Correlation Between Vext Science and Green Thumb
Can any of the company-specific risk be diversified away by investing in both Vext Science and Green Thumb 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 Vext Science and Green Thumb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vext Science and Green Thumb Industries, you can compare the effects of market volatilities on Vext Science and Green Thumb 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 Vext Science with a short position of Green Thumb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vext Science and Green Thumb.
Diversification Opportunities for Vext Science and Green Thumb
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vext and Green is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Vext Science and Green Thumb Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Thumb Industries and Vext Science 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 Vext Science are associated (or correlated) with Green Thumb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Thumb Industries has no effect on the direction of Vext Science i.e., Vext Science and Green Thumb go up and down completely randomly.
Pair Corralation between Vext Science and Green Thumb
Assuming the 90 days horizon Vext Science is expected to generate 2.61 times more return on investment than Green Thumb. However, Vext Science is 2.61 times more volatile than Green Thumb Industries. It trades about -0.03 of its potential returns per unit of risk. Green Thumb Industries is currently generating about -0.11 per unit of risk. If you would invest 13.00 in Vext Science on October 22, 2024 and sell it today you would lose (1.00) from holding Vext Science or give up 7.69% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 94.74% |
Values | Daily Returns |
Vext Science vs. Green Thumb Industries
Performance |
Timeline |
Vext Science |
Green Thumb Industries |
Vext Science and Green Thumb Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vext Science and Green Thumb
The main advantage of trading using opposite Vext Science and Green Thumb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vext Science position performs unexpectedly, Green Thumb 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 Green Thumb will offset losses from the drop in Green Thumb's long position.Vext Science vs. Decibel Cannabis | Vext Science vs. Delta 9 Cannabis | Vext Science vs. Body and Mind | Vext Science vs. CLS Holdings USA |
Green Thumb vs. Curaleaf Holdings | Green Thumb vs. Trulieve Cannabis Corp | Green Thumb vs. Cresco Labs | Green Thumb vs. GrowGeneration Corp |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Transaction History View history of all your transactions and understand their impact on performance | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |