Correlation Between Cannagrow Holdings and Mitie Group
Can any of the company-specific risk be diversified away by investing in both Cannagrow Holdings and Mitie Group 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 Mitie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannagrow Holdings and Mitie Group Plc, you can compare the effects of market volatilities on Cannagrow Holdings and Mitie Group 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 Mitie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannagrow Holdings and Mitie Group.
Diversification Opportunities for Cannagrow Holdings and Mitie Group
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cannagrow and Mitie is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cannagrow Holdings and Mitie Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitie Group Plc 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 Mitie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitie Group Plc has no effect on the direction of Cannagrow Holdings i.e., Cannagrow Holdings and Mitie Group go up and down completely randomly.
Pair Corralation between Cannagrow Holdings and Mitie Group
If you would invest 567.00 in Mitie Group Plc on October 23, 2024 and sell it today you would lose (2.00) from holding Mitie Group Plc or give up 0.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 5.26% |
Values | Daily Returns |
Cannagrow Holdings vs. Mitie Group Plc
Performance |
Timeline |
Cannagrow Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mitie Group Plc |
Cannagrow Holdings and Mitie Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cannagrow Holdings and Mitie Group
The main advantage of trading using opposite Cannagrow Holdings and Mitie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannagrow Holdings position performs unexpectedly, Mitie Group 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 Mitie Group will offset losses from the drop in Mitie Group'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 |
Mitie Group vs. Intertek Group Plc | Mitie Group vs. Wildpack Beverage | Mitie Group vs. DATA Communications Management | Mitie Group vs. Dexterra Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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