Correlation Between CBD Global and Cann American
Can any of the company-specific risk be diversified away by investing in both CBD Global and Cann American 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 CBD Global and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBD Global Sciences and Cann American Corp, you can compare the effects of market volatilities on CBD Global and Cann American 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 CBD Global with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBD Global and Cann American.
Diversification Opportunities for CBD Global and Cann American
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CBD and Cann is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CBD Global Sciences and Cann American Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cann American Corp and CBD Global 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 CBD Global Sciences are associated (or correlated) with Cann American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cann American Corp has no effect on the direction of CBD Global i.e., CBD Global and Cann American go up and down completely randomly.
Pair Corralation between CBD Global and Cann American
If you would invest 6.00 in CBD Global Sciences on October 30, 2024 and sell it today you would earn a total of 0.00 from holding CBD Global Sciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
CBD Global Sciences vs. Cann American Corp
Performance |
| Timeline |
| CBD Global Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cann American Corp |
CBD Global and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBD Global and Cann American
The main advantage of trading using opposite CBD Global and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBD Global position performs unexpectedly, Cann American 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 Cann American will offset losses from the drop in Cann American's long position.| CBD Global vs. Target Group | CBD Global vs. Aequus Pharmaceuticals | CBD Global vs. Filament Health Corp | CBD Global vs. Levitee Labs |
| Cann American vs. XCPCNL Business Services | Cann American vs. Golden Developing Solutions | Cann American vs. Indo Global Exchange | Cann American vs. Cgrowth Capital |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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