Correlation Between Benchmark Botanics and Cannabis Strategic

Can any of the company-specific risk be diversified away by investing in both Benchmark Botanics and Cannabis Strategic 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 Benchmark Botanics and Cannabis Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Benchmark Botanics and Cannabis Strategic Ventures, you can compare the effects of market volatilities on Benchmark Botanics and Cannabis Strategic 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 Benchmark Botanics with a short position of Cannabis Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Botanics and Cannabis Strategic.

Diversification Opportunities for Benchmark Botanics and Cannabis Strategic

0.0

Correlation Coefficient

Benchmark Botanics  Cannabis Strategic

Pay attention - limited upside

The 3 months correlation between Benchmark and Cannabis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Botanics and Cannabis Strategic Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Strategic and Benchmark Botanics 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 Benchmark Botanics are associated (or correlated) with Cannabis Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Strategic has no effect on the direction of Benchmark Botanics i.e., Benchmark Botanics and Cannabis Strategic go up and down completely randomly.

Pair Corralation between Benchmark Botanics and Cannabis Strategic

If you would invest  0.01  in Cannabis Strategic Ventures on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Cannabis Strategic Ventures or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Benchmark Botanics  vs.  Cannabis Strategic Ventures

Benchmark Botanics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Benchmark Botanics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Benchmark Botanics is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cannabis Strategic

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cannabis Strategic Ventures are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Cannabis Strategic unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Benchmark Botanics and Cannabis Strategic

The main advantage of trading using opposite Benchmark Botanics and Cannabis Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Botanics position performs unexpectedly, Cannabis Strategic 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 Cannabis Strategic will offset losses from the drop in Cannabis Strategic's long position.

The idea behind Benchmark Botanics and Cannabis Strategic Ventures pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.