Correlation Between Item 9 and Cresco Labs
Can any of the company-specific risk be diversified away by investing in both Item 9 and Cresco Labs 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 Item 9 and Cresco Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Item 9 Labs and Cresco Labs, you can compare the effects of market volatilities on Item 9 and Cresco Labs 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 Item 9 with a short position of Cresco Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Item 9 and Cresco Labs.
Diversification Opportunities for Item 9 and Cresco Labs
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Item and Cresco is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Item 9 Labs and Cresco Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresco Labs and Item 9 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 Item 9 Labs are associated (or correlated) with Cresco Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresco Labs has no effect on the direction of Item 9 i.e., Item 9 and Cresco Labs go up and down completely randomly.
Pair Corralation between Item 9 and Cresco Labs
Given the investment horizon of 90 days Item 9 Labs is expected to generate 21.19 times more return on investment than Cresco Labs. However, Item 9 is 21.19 times more volatile than Cresco Labs. It trades about 0.11 of its potential returns per unit of risk. Cresco Labs is currently generating about -0.12 per unit of risk. If you would invest 0.01 in Item 9 Labs on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Item 9 Labs or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Item 9 Labs vs. Cresco Labs
Performance |
Timeline |
Item 9 Labs |
Cresco Labs |
Item 9 and Cresco Labs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Item 9 and Cresco Labs
The main advantage of trading using opposite Item 9 and Cresco Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Item 9 position performs unexpectedly, Cresco Labs 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 Cresco Labs will offset losses from the drop in Cresco Labs' long position.Item 9 vs. C21 Investments | Item 9 vs. Delta 9 Cannabis | Item 9 vs. Halo Collective | Item 9 vs. Willow Biosciences |
Cresco Labs vs. Verano Holdings Corp | Cresco Labs vs. AYR Strategies Class | Cresco Labs vs. Green Thumb Industries | Cresco Labs vs. Marimed |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |