Correlation Between YourWay Cannabis and City View
Can any of the company-specific risk be diversified away by investing in both YourWay Cannabis and City View 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 City View 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 City View Green, you can compare the effects of market volatilities on YourWay Cannabis and City View 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 City View. Check out your portfolio center. Please also check ongoing floating volatility patterns of YourWay Cannabis and City View.
Diversification Opportunities for YourWay Cannabis and City View
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YourWay and City is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YourWay Cannabis Brands and City View Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City View Green 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 City View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City View Green has no effect on the direction of YourWay Cannabis i.e., YourWay Cannabis and City View go up and down completely randomly.
Pair Corralation between YourWay Cannabis and City View
Assuming the 90 days horizon YourWay Cannabis Brands is expected to generate 4.55 times more return on investment than City View. However, YourWay Cannabis is 4.55 times more volatile than City View Green. It trades about 0.07 of its potential returns per unit of risk. City View Green is currently generating about 0.07 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. City View Green
Performance |
| Timeline |
| YourWay Cannabis Brands |
| City View Green |
YourWay Cannabis and City View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YourWay Cannabis and City View
The main advantage of trading using opposite YourWay Cannabis and City View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YourWay Cannabis position performs unexpectedly, City View 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 City View will offset losses from the drop in City View'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 |
| City View vs. Benchmark Botanics | City View vs. Speakeasy Cannabis Club | City View vs. BC Craft Supply | City View 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |