Correlation Between Rubicon Organics and Body
Can any of the company-specific risk be diversified away by investing in both Rubicon Organics and Body at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Rubicon Organics and Body into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubicon Organics and Body and Mind, you can compare the effects of market volatilities on Rubicon Organics and Body and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Rubicon Organics with a short position of Body. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubicon Organics and Body.
Diversification Opportunities for Rubicon Organics and Body
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rubicon and Body is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Rubicon Organics and Body and Mind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Body and Mind and Rubicon Organics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Rubicon Organics are associated (or correlated) with Body. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Body and Mind has no effect on the direction of Rubicon Organics i.e., Rubicon Organics and Body go up and down completely randomly.
Pair Corralation between Rubicon Organics and Body
Assuming the 90 days horizon Rubicon Organics is expected to generate 102.64 times less return on investment than Body. But when comparing it to its historical volatility, Rubicon Organics is 2.62 times less risky than Body. It trades about 0.0 of its potential returns per unit of risk. Body and Mind is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7.25 in Body and Mind on November 2, 2024 and sell it today you would lose (5.51) from holding Body and Mind or give up 76.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubicon Organics vs. Body and Mind
Performance |
| Timeline |
| Rubicon Organics |
| Body and Mind |
Rubicon Organics and Body Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubicon Organics and Body
The main advantage of trading using opposite Rubicon Organics and Body positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubicon Organics position performs unexpectedly, Body can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Body will offset losses from the drop in Body's long position.| Rubicon Organics vs. Benchmark Botanics | Rubicon Organics vs. Speakeasy Cannabis Club | Rubicon Organics vs. City View Green | Rubicon Organics vs. BC Craft Supply |
| Body vs. Goodness Growth Holdings | Body vs. 4Front Ventures Corp | Body vs. Rubicon Organics | Body vs. CLS Holdings USA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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