Correlation Between Verano Holdings and Goodness Growth
Can any of the company-specific risk be diversified away by investing in both Verano Holdings and Goodness Growth 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 Goodness Growth 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 Goodness Growth Holdings, you can compare the effects of market volatilities on Verano Holdings and Goodness Growth 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 Goodness Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verano Holdings and Goodness Growth.
Diversification Opportunities for Verano Holdings and Goodness Growth
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Verano and Goodness is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Verano Holdings Corp and Goodness Growth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodness Growth 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 Goodness Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodness Growth Holdings has no effect on the direction of Verano Holdings i.e., Verano Holdings and Goodness Growth go up and down completely randomly.
Pair Corralation between Verano Holdings and Goodness Growth
Assuming the 90 days horizon Verano Holdings Corp is expected to under-perform the Goodness Growth. In addition to that, Verano Holdings is 1.5 times more volatile than Goodness Growth Holdings. It trades about -0.36 of its total potential returns per unit of risk. Goodness Growth Holdings is currently generating about -0.13 per unit of volatility. If you would invest 45.00 in Goodness Growth Holdings on August 28, 2024 and sell it today you would lose (10.00) from holding Goodness Growth Holdings or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Verano Holdings Corp vs. Goodness Growth Holdings
Performance |
| Timeline |
| Verano Holdings Corp |
| Goodness Growth Holdings |
Verano Holdings and Goodness Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verano Holdings and Goodness Growth
The main advantage of trading using opposite Verano Holdings and Goodness Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verano Holdings position performs unexpectedly, Goodness Growth 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 Goodness Growth will offset losses from the drop in Goodness Growth's long position.| Verano Holdings vs. Cresco Labs | Verano Holdings vs. AYR Strategies Class | Verano Holdings vs. Green Thumb Industries | Verano Holdings vs. Marimed |
| Goodness Growth vs. Verano Holdings Corp | Goodness Growth vs. Lowell Farms | Goodness Growth vs. Ascend Wellness Holdings | Goodness Growth vs. 4Front Ventures 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |