Correlation Between Cann American and IAnthus Capital
Can any of the company-specific risk be diversified away by investing in both Cann American and IAnthus Capital 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 IAnthus Capital 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 iAnthus Capital Holdings, you can compare the effects of market volatilities on Cann American and IAnthus Capital 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 IAnthus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cann American and IAnthus Capital.
Diversification Opportunities for Cann American and IAnthus Capital
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cann and IAnthus is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cann American Corp and iAnthus Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iAnthus Capital Holdings 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 IAnthus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iAnthus Capital Holdings has no effect on the direction of Cann American i.e., Cann American and IAnthus Capital go up and down completely randomly.
Pair Corralation between Cann American and IAnthus Capital
Given the investment horizon of 90 days Cann American Corp is expected to generate 2.23 times more return on investment than IAnthus Capital. However, Cann American is 2.23 times more volatile than iAnthus Capital Holdings. It trades about 0.08 of its potential returns per unit of risk. iAnthus Capital Holdings is currently generating about 0.0 per unit of risk. If you would invest 0.48 in Cann American Corp on September 4, 2024 and sell it today you would lose (0.18) from holding Cann American Corp or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Cann American Corp vs. iAnthus Capital Holdings
Performance |
| Timeline |
| Cann American Corp |
| iAnthus Capital Holdings |
Cann American and IAnthus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cann American and IAnthus Capital
The main advantage of trading using opposite Cann American and IAnthus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cann American position performs unexpectedly, IAnthus Capital 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 IAnthus Capital will offset losses from the drop in IAnthus Capital'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 |
| IAnthus Capital vs. Cann American Corp | IAnthus Capital vs. Speakeasy Cannabis Club | IAnthus Capital vs. Benchmark Botanics | IAnthus Capital vs. Link Reservations |
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.
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