Correlation Between Canopy Growth and SmartStop Self
Can any of the company-specific risk be diversified away by investing in both Canopy Growth and SmartStop Self 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 Canopy Growth and SmartStop Self into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canopy Growth Corp and SmartStop Self Storage, you can compare the effects of market volatilities on Canopy Growth and SmartStop Self 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 Canopy Growth with a short position of SmartStop Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canopy Growth and SmartStop Self.
Diversification Opportunities for Canopy Growth and SmartStop Self
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canopy and SmartStop is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Canopy Growth Corp and SmartStop Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartStop Self Storage and Canopy Growth 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 Canopy Growth Corp are associated (or correlated) with SmartStop Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartStop Self Storage has no effect on the direction of Canopy Growth i.e., Canopy Growth and SmartStop Self go up and down completely randomly.
Pair Corralation between Canopy Growth and SmartStop Self
Considering the 90-day investment horizon Canopy Growth Corp is expected to generate 1.99 times more return on investment than SmartStop Self. However, Canopy Growth is 1.99 times more volatile than SmartStop Self Storage. It trades about 0.02 of its potential returns per unit of risk. SmartStop Self Storage is currently generating about 0.01 per unit of risk. If you would invest 520.00 in Canopy Growth Corp on September 14, 2024 and sell it today you would lose (212.00) from holding Canopy Growth Corp or give up 40.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canopy Growth Corp vs. SmartStop Self Storage
Performance |
| Timeline |
| Canopy Growth Corp |
| SmartStop Self Storage |
Canopy Growth and SmartStop Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canopy Growth and SmartStop Self
The main advantage of trading using opposite Canopy Growth and SmartStop Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canopy Growth position performs unexpectedly, SmartStop Self 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 SmartStop Self will offset losses from the drop in SmartStop Self's long position.| Canopy Growth vs. Micron Technology | Canopy Growth vs. Sweetgreen | Canopy Growth vs. Ark Restaurants Corp | Canopy Growth vs. STMicroelectronics NV ADR |
| SmartStop Self vs. Rexford Industrial Realty | SmartStop Self vs. LXP Industrial Trust | SmartStop Self vs. Public Storage | SmartStop Self vs. Rexford Industrial Realty |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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