Correlation Between General Cannabis and Choom Holdings
Can any of the company-specific risk be diversified away by investing in both General Cannabis and Choom Holdings 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 General Cannabis and Choom Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Cannabis Corp and Choom Holdings, you can compare the effects of market volatilities on General Cannabis and Choom Holdings 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 General Cannabis with a short position of Choom Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Cannabis and Choom Holdings.
Diversification Opportunities for General Cannabis and Choom Holdings
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between General and Choom is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding General Cannabis Corp and Choom Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choom Holdings and General Cannabis 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 General Cannabis Corp are associated (or correlated) with Choom Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choom Holdings has no effect on the direction of General Cannabis i.e., General Cannabis and Choom Holdings go up and down completely randomly.
Pair Corralation between General Cannabis and Choom Holdings
If you would invest 0.00 in Choom Holdings on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Choom Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
General Cannabis Corp vs. Choom Holdings
Performance |
| Timeline |
| General Cannabis Corp |
| Choom Holdings |
General Cannabis and Choom Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Cannabis and Choom Holdings
The main advantage of trading using opposite General Cannabis and Choom Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Cannabis position performs unexpectedly, Choom Holdings 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 Choom Holdings will offset losses from the drop in Choom Holdings' long position.| General Cannabis vs. Verano Holdings Corp | General Cannabis vs. 4Front Ventures Corp | General Cannabis vs. Ascend Wellness Holdings | General Cannabis vs. Medicine Man Technologies |
| Choom Holdings vs. Green Cures Botanical | Choom Holdings vs. Cann American Corp | Choom Holdings vs. Rimrock Gold Corp | Choom Holdings vs. Galexxy Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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