Correlation Between China Infrastructure and Greater Cannabis
Can any of the company-specific risk be diversified away by investing in both China Infrastructure and Greater Cannabis 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 Greater Cannabis 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 Greater Cannabis, you can compare the effects of market volatilities on China Infrastructure and Greater Cannabis 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 Greater Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Infrastructure and Greater Cannabis.
Diversification Opportunities for China Infrastructure and Greater Cannabis
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Greater is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Infrastructure Construct and Greater Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Cannabis 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 Greater Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Cannabis has no effect on the direction of China Infrastructure i.e., China Infrastructure and Greater Cannabis go up and down completely randomly.
Pair Corralation between China Infrastructure and Greater Cannabis
If you would invest 0.04 in China Infrastructure Construction on August 28, 2024 and sell it today you would earn a total of 0.00 from holding China Infrastructure Construction or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
China Infrastructure Construct vs. Greater Cannabis
Performance |
| Timeline |
| China Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greater Cannabis |
China Infrastructure and Greater Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Infrastructure and Greater Cannabis
The main advantage of trading using opposite China Infrastructure and Greater Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Infrastructure position performs unexpectedly, Greater Cannabis 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 Greater Cannabis will offset losses from the drop in Greater Cannabis' 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 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |