Correlation Between Slate Grocery and Green Cures

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Green Cures 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 Slate Grocery and Green Cures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and Green Cures Botanical, you can compare the effects of market volatilities on Slate Grocery and Green Cures 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 Slate Grocery with a short position of Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Green Cures.

Diversification Opportunities for Slate Grocery and Green Cures

0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between Slate and Green is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Green Cures Botanical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cures Botanical and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with Green Cures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cures Botanical has no effect on the direction of Slate Grocery i.e., Slate Grocery and Green Cures go up and down completely randomly.

Pair Corralation between Slate Grocery and Green Cures

Assuming the 90 days horizon Slate Grocery is expected to generate 121.41 times less return on investment than Green Cures. But when comparing it to its historical volatility, Slate Grocery REIT is 140.52 times less risky than Green Cures. It trades about 0.14 of its potential returns per unit of risk. Green Cures Botanical is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Green Cures Botanical on September 1, 2025 and sell it today you would earn a total of  0.00  from holding Green Cures Botanical or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Slate Grocery REIT  vs.  Green Cures Botanical

 Performance 
       Timeline  
Slate Grocery REIT 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Slate Grocery REIT are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Slate Grocery may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Green Cures Botanical 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Green Cures Botanical are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, Green Cures unveiled solid returns over the last few months and may actually be approaching a breakup point.

Slate Grocery and Green Cures Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Slate Grocery and Green Cures

The main advantage of trading using opposite Slate Grocery and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Green Cures 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 Green Cures will offset losses from the drop in Green Cures' long position.
The idea behind Slate Grocery REIT and Green Cures Botanical 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.
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities