Correlation Between Sugarmade and Grown Rogue

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

By analyzing existing cross correlation between Sugarmade and Grown Rogue International, you can compare the effects of market volatilities on Sugarmade and Grown Rogue 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 Sugarmade with a short position of Grown Rogue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sugarmade and Grown Rogue.

Diversification Opportunities for Sugarmade and Grown Rogue

-0.27

Correlation Coefficient

Sugarmade  Grown Rogue

Very good diversification

The 3 months correlation between Sugarmade and Grown is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sugarmade and Grown Rogue International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grown Rogue International and Sugarmade 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 Sugarmade are associated (or correlated) with Grown Rogue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grown Rogue International has no effect on the direction of Sugarmade i.e., Sugarmade and Grown Rogue go up and down completely randomly.

Pair Corralation between Sugarmade and Grown Rogue

Given the investment horizon of 90 days Sugarmade is expected to generate 44.62 times more return on investment than Grown Rogue. However, Sugarmade is 44.62 times more volatile than Grown Rogue International. It trades about 0.15 of its potential returns per unit of risk. Grown Rogue International is currently generating about -0.04 per unit of risk. If you would invest  0.01  in Sugarmade on May 6, 2025 and sell it today you would lose (0.01) from holding Sugarmade or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Sugarmade  vs.  Grown Rogue International

Sugarmade

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sugarmade are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Sugarmade exhibited solid returns over the last few months and may actually be approaching a breakup point.

Grown Rogue International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grown Rogue International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Sugarmade and Grown Rogue

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

The idea behind Sugarmade and Grown Rogue International 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.