Correlation Between Hempfusion Wellness and Green Cures
Can any of the company-specific risk be diversified away by investing in both Hempfusion Wellness and Green Cures 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 Hempfusion Wellness and Green Cures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hempfusion Wellness and Green Cures Botanical, you can compare the effects of market volatilities on Hempfusion Wellness and Green Cures 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 Hempfusion Wellness with a short position of Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hempfusion Wellness and Green Cures.
Diversification Opportunities for Hempfusion Wellness and Green Cures
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hempfusion and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hempfusion Wellness and Green Cures Botanical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cures Botanical and Hempfusion Wellness 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 Hempfusion Wellness are associated (or correlated) with Green Cures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cures Botanical has no effect on the direction of Hempfusion Wellness i.e., Hempfusion Wellness and Green Cures go up and down completely randomly.
Pair Corralation between Hempfusion Wellness and Green Cures
Assuming the 90 days horizon Hempfusion Wellness is expected to generate 2.61 times more return on investment than Green Cures. However, Hempfusion Wellness is 2.61 times more volatile than Green Cures Botanical. It trades about 0.1 of its potential returns per unit of risk. Green Cures Botanical is currently generating about 0.17 per unit of risk. If you would invest 0.50 in Hempfusion Wellness on August 30, 2024 and sell it today you would lose (0.49) from holding Hempfusion Wellness or give up 98.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hempfusion Wellness vs. Green Cures Botanical
Performance |
| Timeline |
| Hempfusion Wellness |
| Green Cures Botanical |
Hempfusion Wellness and Green Cures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hempfusion Wellness and Green Cures
The main advantage of trading using opposite Hempfusion Wellness and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hempfusion Wellness position performs unexpectedly, Green Cures 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 Green Cures will offset losses from the drop in Green Cures' long position.| Hempfusion Wellness vs. Green Cures Botanical | Hempfusion Wellness vs. Cann American Corp | Hempfusion Wellness vs. Rimrock Gold Corp | Hempfusion Wellness vs. Galexxy Holdings |
| Green Cures vs. Cann American Corp | Green Cures vs. Rimrock Gold Corp | Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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