Correlation Between Verano Holdings and Body
Can any of the company-specific risk be diversified away by investing in both Verano Holdings 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 Verano Holdings and Body into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verano Holdings Corp and Body and Mind, you can compare the effects of market volatilities on Verano Holdings 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 Verano Holdings with a short position of Body. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verano Holdings and Body.
Diversification Opportunities for Verano Holdings and Body
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Verano and Body is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Verano Holdings Corp 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 Verano Holdings 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 Verano Holdings Corp 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 Verano Holdings i.e., Verano Holdings and Body go up and down completely randomly.
Pair Corralation between Verano Holdings and Body
Assuming the 90 days horizon Verano Holdings Corp is expected to under-perform the Body. But the otc stock apears to be less risky and, when comparing its historical volatility, Verano Holdings Corp is 1.08 times less risky than Body. The otc stock trades about -0.33 of its potential returns per unit of risk. The Body and Mind is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Body and Mind on September 1, 2024 and sell it today you would lose (0.95) from holding Body and Mind or give up 47.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Verano Holdings Corp vs. Body and Mind
Performance |
| Timeline |
| Verano Holdings Corp |
| Body and Mind |
Verano Holdings and Body Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verano Holdings and Body
The main advantage of trading using opposite Verano Holdings and Body positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verano Holdings 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.| Verano Holdings vs. Cresco Labs | Verano Holdings vs. AYR Strategies Class | Verano Holdings vs. Green Thumb Industries | Verano Holdings vs. Marimed |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |