Correlation Between Hempfusion Wellness and Integrated Cannabis
Can any of the company-specific risk be diversified away by investing in both Hempfusion Wellness and Integrated Cannabis 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 Integrated Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hempfusion Wellness and Integrated Cannabis Solutions, you can compare the effects of market volatilities on Hempfusion Wellness and Integrated Cannabis 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 Integrated Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hempfusion Wellness and Integrated Cannabis.
Diversification Opportunities for Hempfusion Wellness and Integrated Cannabis
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hempfusion and Integrated is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hempfusion Wellness and Integrated Cannabis Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Cannabis 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 Integrated Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Cannabis has no effect on the direction of Hempfusion Wellness i.e., Hempfusion Wellness and Integrated Cannabis go up and down completely randomly.
Pair Corralation between Hempfusion Wellness and Integrated Cannabis
Assuming the 90 days horizon Hempfusion Wellness is expected to generate 6.67 times more return on investment than Integrated Cannabis. However, Hempfusion Wellness is 6.67 times more volatile than Integrated Cannabis Solutions. It trades about 0.09 of its potential returns per unit of risk. Integrated Cannabis Solutions is currently generating about 0.1 per unit of risk. If you would invest 2.30 in Hempfusion Wellness on November 2, 2024 and sell it today you would lose (2.30) from holding Hempfusion Wellness or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hempfusion Wellness vs. Integrated Cannabis Solutions
Performance |
| Timeline |
| Hempfusion Wellness |
| Integrated Cannabis |
Hempfusion Wellness and Integrated Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hempfusion Wellness and Integrated Cannabis
The main advantage of trading using opposite Hempfusion Wellness and Integrated Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hempfusion Wellness position performs unexpectedly, Integrated Cannabis 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 Integrated Cannabis will offset losses from the drop in Integrated Cannabis' long position.| Hempfusion Wellness vs. City View Green | Hempfusion Wellness vs. Speakeasy Cannabis Club | Hempfusion Wellness vs. Benchmark Botanics | Hempfusion Wellness vs. Pure Harvest Cannabis |
| Integrated Cannabis vs. Speakeasy Cannabis Club | Integrated Cannabis vs. City View Green | Integrated Cannabis vs. Benchmark Botanics | Integrated Cannabis vs. Ravenquest Biomed |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |