Correlation Between Acacia Diversified and Greater Cannabis
Can any of the company-specific risk be diversified away by investing in both Acacia Diversified and Greater Cannabis 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 Acacia Diversified and Greater Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acacia Diversified Holdings and Greater Cannabis, you can compare the effects of market volatilities on Acacia Diversified and Greater Cannabis 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 Acacia Diversified with a short position of Greater Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acacia Diversified and Greater Cannabis.
Diversification Opportunities for Acacia Diversified and Greater Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acacia and Greater is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acacia Diversified Holdings and Greater Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Cannabis and Acacia Diversified 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 Acacia Diversified Holdings are associated (or correlated) with Greater Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Cannabis has no effect on the direction of Acacia Diversified i.e., Acacia Diversified and Greater Cannabis go up and down completely randomly.
Pair Corralation between Acacia Diversified and Greater Cannabis
If you would invest 0.05 in Greater Cannabis on August 28, 2024 and sell it today you would lose (0.01) from holding Greater Cannabis or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Acacia Diversified Holdings vs. Greater Cannabis
Performance |
| Timeline |
| Acacia Diversified |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greater Cannabis |
Acacia Diversified and Greater Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acacia Diversified and Greater Cannabis
The main advantage of trading using opposite Acacia Diversified and Greater Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acacia Diversified position performs unexpectedly, Greater Cannabis 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 Greater Cannabis will offset losses from the drop in Greater Cannabis' long position.| Acacia Diversified vs. Now Corp | Acacia Diversified vs. Holloman Energy Corp | Acacia Diversified vs. Ubiquitech Software | Acacia Diversified vs. THC Therapeutics |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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