Correlation Between CbdMD and Benchmark Botanics
Can any of the company-specific risk be diversified away by investing in both CbdMD and Benchmark Botanics 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 CbdMD and Benchmark Botanics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cbdMD Inc and Benchmark Botanics, you can compare the effects of market volatilities on CbdMD and Benchmark Botanics 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 CbdMD with a short position of Benchmark Botanics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CbdMD and Benchmark Botanics.
Diversification Opportunities for CbdMD and Benchmark Botanics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CbdMD and Benchmark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding cbdMD Inc and Benchmark Botanics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Botanics and CbdMD 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 cbdMD Inc are associated (or correlated) with Benchmark Botanics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Botanics has no effect on the direction of CbdMD i.e., CbdMD and Benchmark Botanics go up and down completely randomly.
Pair Corralation between CbdMD and Benchmark Botanics
If you would invest 73.00 in cbdMD Inc on September 4, 2024 and sell it today you would lose (23.00) from holding cbdMD Inc or give up 31.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
cbdMD Inc vs. Benchmark Botanics
Performance |
| Timeline |
| cbdMD Inc |
| Benchmark Botanics |
CbdMD and Benchmark Botanics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CbdMD and Benchmark Botanics
The main advantage of trading using opposite CbdMD and Benchmark Botanics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CbdMD position performs unexpectedly, Benchmark Botanics 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 Benchmark Botanics will offset losses from the drop in Benchmark Botanics' long position.| CbdMD vs. CV Sciences | CbdMD vs. Trulieve Cannabis Corp | CbdMD vs. Curaleaf Holdings | CbdMD vs. Green Thumb Industries |
| Benchmark Botanics vs. Speakeasy Cannabis Club | Benchmark Botanics vs. City View Green | Benchmark Botanics vs. BC Craft Supply | Benchmark Botanics vs. Ravenquest Biomed |
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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