Correlation Between Choom Holdings and General Cannabis
Can any of the company-specific risk be diversified away by investing in both Choom Holdings and General 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 Choom Holdings and General Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Choom Holdings and General Cannabis Corp, you can compare the effects of market volatilities on Choom Holdings and General 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 Choom Holdings with a short position of General Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choom Holdings and General Cannabis.
Diversification Opportunities for Choom Holdings and General Cannabis
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Choom and General is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Choom Holdings and General Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Cannabis Corp and Choom 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 Choom Holdings are associated (or correlated) with General Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Cannabis Corp has no effect on the direction of Choom Holdings i.e., Choom Holdings and General Cannabis go up and down completely randomly.
Pair Corralation between Choom Holdings and General Cannabis
Assuming the 90 days horizon Choom Holdings is expected to generate 14.99 times more return on investment than General Cannabis. However, Choom Holdings is 14.99 times more volatile than General Cannabis Corp. It trades about 0.12 of its potential returns per unit of risk. General Cannabis Corp is currently generating about 0.0 per unit of risk. If you would invest 0.22 in Choom Holdings on September 1, 2024 and sell it today you would lose (0.22) from holding Choom Holdings or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Choom Holdings vs. General Cannabis Corp
Performance |
| Timeline |
| Choom Holdings |
| General Cannabis Corp |
Choom Holdings and General Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choom Holdings and General Cannabis
The main advantage of trading using opposite Choom Holdings and General Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choom Holdings position performs unexpectedly, General 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 General Cannabis will offset losses from the drop in General Cannabis' long position.| Choom Holdings vs. Acreage Holdings | Choom Holdings vs. BZAM | Choom Holdings vs. Stem Holdings | Choom Holdings vs. Delivra Health Brands |
| General Cannabis vs. Verano Holdings Corp | General Cannabis vs. 4Front Ventures Corp | General Cannabis vs. Ascend Wellness Holdings | General Cannabis vs. Medicine Man Technologies |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |