Correlation Between Cannagrow Holdings and Blue Water
Can any of the company-specific risk be diversified away by investing in both Cannagrow Holdings and Blue Water 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 Cannagrow Holdings and Blue Water into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannagrow Holdings and Blue Water Ventures, you can compare the effects of market volatilities on Cannagrow Holdings and Blue Water 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 Cannagrow Holdings with a short position of Blue Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannagrow Holdings and Blue Water.
Diversification Opportunities for Cannagrow Holdings and Blue Water
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cannagrow and Blue is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cannagrow Holdings and Blue Water Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Water Ventures and Cannagrow Holdings 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 Cannagrow Holdings are associated (or correlated) with Blue Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Water Ventures has no effect on the direction of Cannagrow Holdings i.e., Cannagrow Holdings and Blue Water go up and down completely randomly.
Pair Corralation between Cannagrow Holdings and Blue Water
Given the investment horizon of 90 days Cannagrow Holdings is expected to generate 0.78 times more return on investment than Blue Water. However, Cannagrow Holdings is 1.28 times less risky than Blue Water. It trades about 0.05 of its potential returns per unit of risk. Blue Water Ventures is currently generating about -0.06 per unit of risk. If you would invest 2.85 in Cannagrow Holdings on September 2, 2024 and sell it today you would lose (0.05) from holding Cannagrow Holdings or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 18.9% |
| Values | Daily Returns |
Cannagrow Holdings vs. Blue Water Ventures
Performance |
| Timeline |
| Cannagrow Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blue Water Ventures |
Cannagrow Holdings and Blue Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannagrow Holdings and Blue Water
The main advantage of trading using opposite Cannagrow Holdings and Blue Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannagrow Holdings position performs unexpectedly, Blue Water 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 Blue Water will offset losses from the drop in Blue Water's long position.| Cannagrow Holdings vs. Dexterra Group | Cannagrow Holdings vs. Intertek Group Plc | Cannagrow Holdings vs. Wildpack Beverage | Cannagrow Holdings vs. DATA Communications Management |
| Blue Water vs. Mills Music Trust | Blue Water vs. Citrine Global Corp | Blue Water vs. DATA Communications Management | Blue Water vs. Ijj Corporation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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