Correlation Between 22nd Century and Charlies Holdings
Can any of the company-specific risk be diversified away by investing in both 22nd Century and Charlies 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 22nd Century and Charlies Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 22nd Century Group and Charlies Holdings, you can compare the effects of market volatilities on 22nd Century and Charlies 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 22nd Century with a short position of Charlies Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 22nd Century and Charlies Holdings.
Diversification Opportunities for 22nd Century and Charlies Holdings
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 22nd and Charlies is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding 22nd Century Group and Charlies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charlies Holdings and 22nd Century 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 22nd Century Group are associated (or correlated) with Charlies Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charlies Holdings has no effect on the direction of 22nd Century i.e., 22nd Century and Charlies Holdings go up and down completely randomly.
Pair Corralation between 22nd Century and Charlies Holdings
If you would invest 11.00 in 22nd Century Group on August 28, 2024 and sell it today you would earn a total of 0.00 from holding 22nd Century Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
22nd Century Group vs. Charlies Holdings
Performance |
| Timeline |
| 22nd Century Group |
| Charlies Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
22nd Century and Charlies Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 22nd Century and Charlies Holdings
The main advantage of trading using opposite 22nd Century and Charlies Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 22nd Century position performs unexpectedly, Charlies 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 Charlies Holdings will offset losses from the drop in Charlies Holdings' long position.| 22nd Century vs. Turning Point Brands | 22nd Century vs. Green Globe International | 22nd Century vs. Imperial Brands PLC | 22nd Century vs. Kaival Brands Innovations |
| Charlies Holdings vs. Pyxus International | Charlies Holdings vs. PT Hanjaya Mandala | Charlies Holdings vs. Greenlane Holdings | Charlies Holdings vs. Japan Tobacco ADR |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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