Correlation Between Beard Energy and Canna Global
Can any of the company-specific risk be diversified away by investing in both Beard Energy and Canna Global 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 Beard Energy and Canna Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beard Energy Transition and Canna Global Acquisition, you can compare the effects of market volatilities on Beard Energy and Canna Global 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 Beard Energy with a short position of Canna Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beard Energy and Canna Global.
Diversification Opportunities for Beard Energy and Canna Global
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beard and Canna is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Beard Energy Transition and Canna Global Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canna Global Acquisition and Beard Energy 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 Beard Energy Transition are associated (or correlated) with Canna Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canna Global Acquisition has no effect on the direction of Beard Energy i.e., Beard Energy and Canna Global go up and down completely randomly.
Pair Corralation between Beard Energy and Canna Global
Considering the 90-day investment horizon Beard Energy is expected to generate 134.0 times less return on investment than Canna Global. But when comparing it to its historical volatility, Beard Energy Transition is 3.34 times less risky than Canna Global. It trades about 0.0 of its potential returns per unit of risk. Canna Global Acquisition is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,076 in Canna Global Acquisition on September 12, 2024 and sell it today you would earn a total of 65.00 from holding Canna Global Acquisition or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.62% |
| Values | Daily Returns |
Beard Energy Transition vs. Canna Global Acquisition
Performance |
| Timeline |
| Beard Energy Transition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canna Global Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Beard Energy and Canna Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beard Energy and Canna Global
The main advantage of trading using opposite Beard Energy and Canna Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beard Energy position performs unexpectedly, Canna Global 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 Canna Global will offset losses from the drop in Canna Global's long position.| Beard Energy vs. PowerUp Acquisition Corp | Beard Energy vs. Everest Consolidator Acquisition | Beard Energy vs. Valuence Merger 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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