Correlation Between Choom Holdings and Cann American
Can any of the company-specific risk be diversified away by investing in both Choom Holdings and Cann American 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 Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Choom Holdings and Cann American Corp, you can compare the effects of market volatilities on Choom Holdings and Cann American 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 Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choom Holdings and Cann American.
Diversification Opportunities for Choom Holdings and Cann American
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Choom and Cann is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Choom Holdings and Cann American Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cann American 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 Cann American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cann American Corp has no effect on the direction of Choom Holdings i.e., Choom Holdings and Cann American go up and down completely randomly.
Pair Corralation between Choom Holdings and Cann American
Assuming the 90 days horizon Choom Holdings is expected to generate 6.22 times more return on investment than Cann American. However, Choom Holdings is 6.22 times more volatile than Cann American Corp. It trades about 0.11 of its potential returns per unit of risk. Cann American Corp is currently generating about 0.07 per unit of risk. If you would invest 0.26 in Choom Holdings on September 4, 2024 and sell it today you would lose (0.26) from holding Choom Holdings or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Choom Holdings vs. Cann American Corp
Performance |
| Timeline |
| Choom Holdings |
| Cann American Corp |
Choom Holdings and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choom Holdings and Cann American
The main advantage of trading using opposite Choom Holdings and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choom Holdings position performs unexpectedly, Cann American 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 Cann American will offset losses from the drop in Cann American's long position.| Choom Holdings vs. Acreage Holdings | Choom Holdings vs. BZAM | Choom Holdings vs. Stem Holdings | Choom Holdings vs. Delivra Health Brands |
| Cann American vs. XCPCNL Business Services | Cann American vs. Golden Developing Solutions | Cann American vs. Indo Global Exchange | Cann American vs. Cgrowth Capital |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |