Correlation Between Avicanna and CuraScientific
Can any of the company-specific risk be diversified away by investing in both Avicanna and CuraScientific 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 Avicanna and CuraScientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avicanna and CuraScientific, you can compare the effects of market volatilities on Avicanna and CuraScientific 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 Avicanna with a short position of CuraScientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avicanna and CuraScientific.
Diversification Opportunities for Avicanna and CuraScientific
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Avicanna and CuraScientific is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Avicanna and CuraScientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CuraScientific and Avicanna 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 Avicanna are associated (or correlated) with CuraScientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CuraScientific has no effect on the direction of Avicanna i.e., Avicanna and CuraScientific go up and down completely randomly.
Pair Corralation between Avicanna and CuraScientific
If you would invest 23.00 in Avicanna on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Avicanna or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Avicanna vs. CuraScientific
Performance |
| Timeline |
| Avicanna |
| CuraScientific |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Avicanna and CuraScientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avicanna and CuraScientific
The main advantage of trading using opposite Avicanna and CuraScientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avicanna position performs unexpectedly, CuraScientific 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 CuraScientific will offset losses from the drop in CuraScientific's long position.| Avicanna vs. Pharmacielo | Avicanna vs. Khiron Life Sciences | Avicanna vs. Flower One Holdings | Avicanna vs. Cansortium |
| CuraScientific vs. ManifestSeven Holdings | CuraScientific vs. Grey Cloak Tech | CuraScientific vs. Pure Harvest Cannabis | CuraScientific vs. Ionic Brands Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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