Correlation Between YourWay Cannabis and BC Craft
Can any of the company-specific risk be diversified away by investing in both YourWay Cannabis and BC Craft 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 YourWay Cannabis and BC Craft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YourWay Cannabis Brands and BC Craft Supply, you can compare the effects of market volatilities on YourWay Cannabis and BC Craft 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 YourWay Cannabis with a short position of BC Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of YourWay Cannabis and BC Craft.
Diversification Opportunities for YourWay Cannabis and BC Craft
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YourWay and CRFTF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YourWay Cannabis Brands and BC Craft Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BC Craft Supply and YourWay Cannabis 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 YourWay Cannabis Brands are associated (or correlated) with BC Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BC Craft Supply has no effect on the direction of YourWay Cannabis i.e., YourWay Cannabis and BC Craft go up and down completely randomly.
Pair Corralation between YourWay Cannabis and BC Craft
Assuming the 90 days horizon YourWay Cannabis Brands is expected to generate 1.53 times more return on investment than BC Craft. However, YourWay Cannabis is 1.53 times more volatile than BC Craft Supply. It trades about 0.07 of its potential returns per unit of risk. BC Craft Supply is currently generating about 0.09 per unit of risk. If you would invest 4.00 in YourWay Cannabis Brands on August 30, 2024 and sell it today you would lose (4.00) from holding YourWay Cannabis Brands or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YourWay Cannabis Brands vs. BC Craft Supply
Performance |
| Timeline |
| YourWay Cannabis Brands |
| BC Craft Supply |
YourWay Cannabis and BC Craft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YourWay Cannabis and BC Craft
The main advantage of trading using opposite YourWay Cannabis and BC Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YourWay Cannabis position performs unexpectedly, BC Craft 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 BC Craft will offset losses from the drop in BC Craft's long position.| YourWay Cannabis vs. Decibel Cannabis | YourWay Cannabis vs. Delta 9 Cannabis | YourWay Cannabis vs. Body and Mind | YourWay Cannabis vs. CLS Holdings USA |
| BC Craft vs. Green Cures Botanical | BC Craft vs. Cann American Corp | BC Craft vs. Rimrock Gold Corp | BC Craft vs. Galexxy Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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