Correlation Between Verano Holdings and Curaleaf Holdings
Can any of the company-specific risk be diversified away by investing in both Verano Holdings and Curaleaf Holdings 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 Curaleaf Holdings 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 Curaleaf Holdings, you can compare the effects of market volatilities on Verano Holdings and Curaleaf Holdings 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 Curaleaf Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verano Holdings and Curaleaf Holdings.
Diversification Opportunities for Verano Holdings and Curaleaf Holdings
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Verano and Curaleaf is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Verano Holdings Corp and Curaleaf Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curaleaf Holdings 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 Curaleaf Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curaleaf Holdings has no effect on the direction of Verano Holdings i.e., Verano Holdings and Curaleaf Holdings go up and down completely randomly.
Pair Corralation between Verano Holdings and Curaleaf Holdings
Assuming the 90 days horizon Verano Holdings Corp is expected to under-perform the Curaleaf Holdings. But the otc stock apears to be less risky and, when comparing its historical volatility, Verano Holdings Corp is 1.02 times less risky than Curaleaf Holdings. The otc stock trades about -0.3 of its potential returns per unit of risk. The Curaleaf Holdings is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 334.00 in Curaleaf Holdings on August 25, 2024 and sell it today you would lose (124.00) from holding Curaleaf Holdings or give up 37.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Verano Holdings Corp vs. Curaleaf Holdings
Performance |
| Timeline |
| Verano Holdings Corp |
| Curaleaf Holdings |
Verano Holdings and Curaleaf Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verano Holdings and Curaleaf Holdings
The main advantage of trading using opposite Verano Holdings and Curaleaf Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verano Holdings position performs unexpectedly, Curaleaf Holdings 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 Curaleaf Holdings will offset losses from the drop in Curaleaf Holdings' long position.| Verano Holdings vs. Green Cures Botanical | Verano Holdings vs. Galexxy Holdings | Verano Holdings vs. Indoor Harvest Corp | Verano Holdings vs. Speakeasy Cannabis Club |
| Curaleaf Holdings vs. Green Cures Botanical | Curaleaf Holdings vs. Galexxy Holdings | Curaleaf Holdings vs. Indoor Harvest Corp | Curaleaf Holdings vs. Speakeasy Cannabis Club |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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