Correlation Between Cann American and Hypera SA
Can any of the company-specific risk be diversified away by investing in both Cann American and Hypera SA 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 Hypera SA 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 Hypera SA, you can compare the effects of market volatilities on Cann American and Hypera SA 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 Hypera SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cann American and Hypera SA.
Diversification Opportunities for Cann American and Hypera SA
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cann and Hypera is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cann American Corp and Hypera SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hypera SA 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 Hypera SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hypera SA has no effect on the direction of Cann American i.e., Cann American and Hypera SA go up and down completely randomly.
Pair Corralation between Cann American and Hypera SA
Given the investment horizon of 90 days Cann American Corp is expected to under-perform the Hypera SA. In addition to that, Cann American is 6.26 times more volatile than Hypera SA. It trades about -0.06 of its total potential returns per unit of risk. Hypera SA is currently generating about -0.26 per unit of volatility. If you would invest 377.00 in Hypera SA on September 1, 2024 and sell it today you would lose (56.00) from holding Hypera SA or give up 14.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cann American Corp vs. Hypera SA
Performance |
| Timeline |
| Cann American Corp |
| Hypera SA |
Cann American and Hypera SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cann American and Hypera SA
The main advantage of trading using opposite Cann American and Hypera SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cann American position performs unexpectedly, Hypera SA 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 Hypera SA will offset losses from the drop in Hypera SA'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 |
| Hypera SA vs. Benchmark Botanics | Hypera SA vs. Speakeasy Cannabis Club | Hypera SA vs. City View Green | Hypera SA vs. BC Craft Supply |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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