Correlation Between Accelerate Diagnostics and Cannabix Technologies
Can any of the company-specific risk be diversified away by investing in both Accelerate Diagnostics and Cannabix Technologies 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 Accelerate Diagnostics and Cannabix Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accelerate Diagnostics and Cannabix Technologies, you can compare the effects of market volatilities on Accelerate Diagnostics and Cannabix Technologies 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 Accelerate Diagnostics with a short position of Cannabix Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate Diagnostics and Cannabix Technologies.
Diversification Opportunities for Accelerate Diagnostics and Cannabix Technologies
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Accelerate and Cannabix is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Diagnostics and Cannabix Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabix Technologies and Accelerate Diagnostics 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 Accelerate Diagnostics are associated (or correlated) with Cannabix Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabix Technologies has no effect on the direction of Accelerate Diagnostics i.e., Accelerate Diagnostics and Cannabix Technologies go up and down completely randomly.
Pair Corralation between Accelerate Diagnostics and Cannabix Technologies
Given the investment horizon of 90 days Accelerate Diagnostics is expected to under-perform the Cannabix Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Accelerate Diagnostics is 1.03 times less risky than Cannabix Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Cannabix Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Cannabix Technologies on August 28, 2024 and sell it today you would lose (11.00) from holding Cannabix Technologies or give up 28.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accelerate Diagnostics vs. Cannabix Technologies
Performance |
| Timeline |
| Accelerate Diagnostics |
| Cannabix Technologies |
Accelerate Diagnostics and Cannabix Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accelerate Diagnostics and Cannabix Technologies
The main advantage of trading using opposite Accelerate Diagnostics and Cannabix Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelerate Diagnostics position performs unexpectedly, Cannabix Technologies 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 Cannabix Technologies will offset losses from the drop in Cannabix Technologies' long position.| Accelerate Diagnostics vs. CVRx Inc | Accelerate Diagnostics vs. Neuropace | Accelerate Diagnostics vs. Anika Therapeutics | Accelerate Diagnostics vs. Axogen Inc |
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
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Global Correlations Find global opportunities by holding instruments from different markets |