Correlation Between Trulieve Cannabis and Columbia Care
Can any of the company-specific risk be diversified away by investing in both Trulieve Cannabis and Columbia Care 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 Trulieve Cannabis and Columbia Care into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trulieve Cannabis Corp and Columbia Care, you can compare the effects of market volatilities on Trulieve Cannabis and Columbia Care 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 Trulieve Cannabis with a short position of Columbia Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trulieve Cannabis and Columbia Care.
Diversification Opportunities for Trulieve Cannabis and Columbia Care
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Trulieve and Columbia is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Trulieve Cannabis Corp and Columbia Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Care and Trulieve Cannabis 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 Trulieve Cannabis Corp are associated (or correlated) with Columbia Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Care has no effect on the direction of Trulieve Cannabis i.e., Trulieve Cannabis and Columbia Care go up and down completely randomly.
Pair Corralation between Trulieve Cannabis and Columbia Care
If you would invest 46.00 in Columbia Care on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Columbia Care or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Trulieve Cannabis Corp vs. Columbia Care
Performance |
| Timeline |
| Trulieve Cannabis Corp |
| Columbia Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Trulieve Cannabis and Columbia Care Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trulieve Cannabis and Columbia Care
The main advantage of trading using opposite Trulieve Cannabis and Columbia Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trulieve Cannabis position performs unexpectedly, Columbia Care 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 Columbia Care will offset losses from the drop in Columbia Care's long position.| Trulieve Cannabis vs. Green Thumb Industries | Trulieve Cannabis vs. Curaleaf Holdings | Trulieve Cannabis vs. Cresco Labs | Trulieve Cannabis vs. GrowGeneration Corp |
| Columbia Care vs. Green Thumb Industries | Columbia Care vs. AYR Strategies Class | Columbia Care vs. Trulieve Cannabis Corp | Columbia Care vs. Goodness Growth Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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