Correlation Between Cann American and Genomma Lab
Can any of the company-specific risk be diversified away by investing in both Cann American and Genomma Lab 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 Genomma Lab 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 Genomma Lab Internacional, you can compare the effects of market volatilities on Cann American and Genomma Lab 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 Genomma Lab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cann American and Genomma Lab.
Diversification Opportunities for Cann American and Genomma Lab
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cann and Genomma is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cann American Corp and Genomma Lab Internacional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genomma Lab Internacional 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 Genomma Lab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genomma Lab Internacional has no effect on the direction of Cann American i.e., Cann American and Genomma Lab go up and down completely randomly.
Pair Corralation between Cann American and Genomma Lab
Given the investment horizon of 90 days Cann American Corp is expected to under-perform the Genomma Lab. In addition to that, Cann American is 6.72 times more volatile than Genomma Lab Internacional. It trades about -0.06 of its total potential returns per unit of risk. Genomma Lab Internacional is currently generating about 0.21 per unit of volatility. If you would invest 113.00 in Genomma Lab Internacional on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Genomma Lab Internacional or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cann American Corp vs. Genomma Lab Internacional
Performance |
| Timeline |
| Cann American Corp |
| Genomma Lab Internacional |
Cann American and Genomma Lab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cann American and Genomma Lab
The main advantage of trading using opposite Cann American and Genomma Lab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cann American position performs unexpectedly, Genomma Lab 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 Genomma Lab will offset losses from the drop in Genomma Lab's 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 |
| Genomma Lab vs. Speakeasy Cannabis Club | Genomma Lab vs. City View Green | Genomma Lab vs. Benchmark Botanics | Genomma Lab vs. Hypera SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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