Correlation Between Chicago Atlantic and BranchOut Food

Can any of the company-specific risk be diversified away by investing in both Chicago Atlantic and BranchOut Food 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 Chicago Atlantic and BranchOut Food into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chicago Atlantic BDC, and BranchOut Food Common, you can compare the effects of market volatilities on Chicago Atlantic and BranchOut Food 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 Chicago Atlantic with a short position of BranchOut Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicago Atlantic and BranchOut Food.

Diversification Opportunities for Chicago Atlantic and BranchOut Food

-0.01

Correlation Coefficient

Chicago Atlantic  BranchOut Food

Good diversification

The 3 months correlation between Chicago and BranchOut is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Chicago Atlantic BDC, and BranchOut Food Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BranchOut Food Common and Chicago Atlantic 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 Chicago Atlantic BDC, are associated (or correlated) with BranchOut Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BranchOut Food Common has no effect on the direction of Chicago Atlantic i.e., Chicago Atlantic and BranchOut Food go up and down completely randomly.

Pair Corralation between Chicago Atlantic and BranchOut Food

Given the investment horizon of 90 days Chicago Atlantic BDC, is expected to under-perform the BranchOut Food. But the stock apears to be less risky and, when comparing its historical volatility, Chicago Atlantic BDC, is 1.29 times less risky than BranchOut Food. The stock trades about -0.21 of its potential returns per unit of risk. The BranchOut Food Common is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  161.00  in BranchOut Food Common on October 22, 2024 and sell it today you would earn a total of  18.00  from holding BranchOut Food Common or generate 11.18% return on investment over 90 days.

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

Chicago Atlantic BDC,  vs.  BranchOut Food Common

Chicago Atlantic BDC,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chicago Atlantic BDC, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

BranchOut Food Common

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BranchOut Food Common are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, BranchOut Food may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Chicago Atlantic and BranchOut Food

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

The idea behind Chicago Atlantic BDC, and BranchOut Food Common 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.