Correlation Between Cannabis One and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both Cannabis One and Maple Leaf 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 Cannabis One and Maple Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannabis One Holdings and Maple Leaf Green, you can compare the effects of market volatilities on Cannabis One and Maple Leaf 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 Cannabis One with a short position of Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannabis One and Maple Leaf.
Diversification Opportunities for Cannabis One and Maple Leaf
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cannabis and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis One Holdings and Maple Leaf Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Green and Cannabis One 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 Cannabis One Holdings are associated (or correlated) with Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Green has no effect on the direction of Cannabis One i.e., Cannabis One and Maple Leaf go up and down completely randomly.
Pair Corralation between Cannabis One and Maple Leaf
If you would invest 3.50 in Maple Leaf Green on August 29, 2024 and sell it today you would lose (0.11) from holding Maple Leaf Green or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cannabis One Holdings vs. Maple Leaf Green
Performance |
| Timeline |
| Cannabis One Holdings |
| Maple Leaf Green |
Cannabis One and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannabis One and Maple Leaf
The main advantage of trading using opposite Cannabis One and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannabis One position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| Cannabis One vs. Maple Leaf Green | Cannabis One vs. Blueberries Medical Corp | Cannabis One vs. Khiron Life Sciences | Cannabis One vs. Juva Life |
| Maple Leaf vs. Greater Cannabis | Maple Leaf vs. Global Hemp Group | Maple Leaf vs. Cannabis Suisse Corp | Maple Leaf vs. Mc Endvrs |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance |