Correlation Between China Infrastructure and Cannabis Suisse
Can any of the company-specific risk be diversified away by investing in both China Infrastructure and Cannabis Suisse 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 China Infrastructure and Cannabis Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Infrastructure Construction and Cannabis Suisse Corp, you can compare the effects of market volatilities on China Infrastructure and Cannabis Suisse 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 China Infrastructure with a short position of Cannabis Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Infrastructure and Cannabis Suisse.
Diversification Opportunities for China Infrastructure and Cannabis Suisse
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Cannabis is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding China Infrastructure Construct and Cannabis Suisse Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Suisse Corp and China Infrastructure 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 China Infrastructure Construction are associated (or correlated) with Cannabis Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Suisse Corp has no effect on the direction of China Infrastructure i.e., China Infrastructure and Cannabis Suisse go up and down completely randomly.
Pair Corralation between China Infrastructure and Cannabis Suisse
Given the investment horizon of 90 days China Infrastructure is expected to generate 27.89 times less return on investment than Cannabis Suisse. But when comparing it to its historical volatility, China Infrastructure Construction is 2.74 times less risky than Cannabis Suisse. It trades about 0.01 of its potential returns per unit of risk. Cannabis Suisse Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7.50 in Cannabis Suisse Corp on August 26, 2024 and sell it today you would lose (6.65) from holding Cannabis Suisse Corp or give up 88.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.99% |
| Values | Daily Returns |
China Infrastructure Construct vs. Cannabis Suisse Corp
Performance |
| Timeline |
| China Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cannabis Suisse Corp |
China Infrastructure and Cannabis Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Infrastructure and Cannabis Suisse
The main advantage of trading using opposite China Infrastructure and Cannabis Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Infrastructure position performs unexpectedly, Cannabis Suisse 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 Cannabis Suisse will offset losses from the drop in Cannabis Suisse's long position.| China Infrastructure vs. Medicine Man Technologies | China Infrastructure vs. Kona Gold Solutions | China Infrastructure vs. Green Thumb Industries | China Infrastructure vs. Cann American Corp |
| Cannabis Suisse vs. Greater Cannabis | Cannabis Suisse vs. Global Hemp Group | Cannabis Suisse vs. Maple Leaf Green | Cannabis Suisse vs. Mc Endvrs |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |