Correlation Between 70082LAB3 and 22nd Century
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By analyzing existing cross correlation between US70082LAB36 and 22nd Century Group, you can compare the effects of market volatilities on 70082LAB3 and 22nd Century 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 70082LAB3 with a short position of 22nd Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of 70082LAB3 and 22nd Century.
Diversification Opportunities for 70082LAB3 and 22nd Century
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 70082LAB3 and 22nd is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding US70082LAB36 and 22nd Century Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 22nd Century Group and 70082LAB3 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 US70082LAB36 are associated (or correlated) with 22nd Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 22nd Century Group has no effect on the direction of 70082LAB3 i.e., 70082LAB3 and 22nd Century go up and down completely randomly.
Pair Corralation between 70082LAB3 and 22nd Century
Assuming the 90 days trading horizon US70082LAB36 is expected to generate 6.99 times more return on investment than 22nd Century. However, 70082LAB3 is 6.99 times more volatile than 22nd Century Group. It trades about 0.06 of its potential returns per unit of risk. 22nd Century Group is currently generating about -0.12 per unit of risk. If you would invest 7,100 in US70082LAB36 on August 30, 2024 and sell it today you would earn a total of 1,438 from holding US70082LAB36 or generate 20.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 43.35% |
| Values | Daily Returns |
US70082LAB36 vs. 22nd Century Group
Performance |
| Timeline |
| US70082LAB36 |
| 22nd Century Group |
70082LAB3 and 22nd Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 70082LAB3 and 22nd Century
The main advantage of trading using opposite 70082LAB3 and 22nd Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 70082LAB3 position performs unexpectedly, 22nd Century 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 22nd Century will offset losses from the drop in 22nd Century's long position.| 70082LAB3 vs. Aris Water Solutions | 70082LAB3 vs. Viemed Healthcare | 70082LAB3 vs. PGE Corp | 70082LAB3 vs. HUTCHMED DRC |
| 22nd Century vs. Universal | 22nd Century vs. Imperial Brands PLC | 22nd Century vs. British American Tobacco | 22nd Century vs. Philip Morris International |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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