Correlation Between Cann American and C21 Investments
Can any of the company-specific risk be diversified away by investing in both Cann American and C21 Investments 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 Cann American and C21 Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cann American Corp and C21 Investments, you can compare the effects of market volatilities on Cann American and C21 Investments 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 Cann American with a short position of C21 Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cann American and C21 Investments.
Diversification Opportunities for Cann American and C21 Investments
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cann and C21 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cann American Corp and C21 Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C21 Investments and Cann American 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 Cann American Corp are associated (or correlated) with C21 Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C21 Investments has no effect on the direction of Cann American i.e., Cann American and C21 Investments go up and down completely randomly.
Pair Corralation between Cann American and C21 Investments
Given the investment horizon of 90 days Cann American Corp is expected to generate 2.91 times more return on investment than C21 Investments. However, Cann American is 2.91 times more volatile than C21 Investments. It trades about 0.1 of its potential returns per unit of risk. C21 Investments is currently generating about 0.01 per unit of risk. If you would invest 0.20 in Cann American Corp on September 1, 2024 and sell it today you would earn a total of 0.12 from holding Cann American Corp or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Cann American Corp vs. C21 Investments
Performance |
| Timeline |
| Cann American Corp |
| C21 Investments |
Cann American and C21 Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cann American and C21 Investments
The main advantage of trading using opposite Cann American and C21 Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cann American position performs unexpectedly, C21 Investments 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 C21 Investments will offset losses from the drop in C21 Investments' long position.| Cann American vs. XCPCNL Business Services | Cann American vs. Golden Developing Solutions | Cann American vs. Indo Global Exchange | Cann American vs. Cgrowth Capital |
| C21 Investments vs. Delta 9 Cannabis | C21 Investments vs. Halo Collective | C21 Investments vs. Willow Biosciences | C21 Investments vs. Entourage Health 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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