Correlation Between Cann American and ProConcept Marketing
Can any of the company-specific risk be diversified away by investing in both Cann American and ProConcept Marketing 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 ProConcept Marketing 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 ProConcept Marketing Group, you can compare the effects of market volatilities on Cann American and ProConcept Marketing 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 ProConcept Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cann American and ProConcept Marketing.
Diversification Opportunities for Cann American and ProConcept Marketing
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cann and ProConcept is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cann American Corp and ProConcept Marketing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProConcept Marketing 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 ProConcept Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProConcept Marketing has no effect on the direction of Cann American i.e., Cann American and ProConcept Marketing go up and down completely randomly.
Pair Corralation between Cann American and ProConcept Marketing
Given the investment horizon of 90 days Cann American Corp is expected to generate 1.27 times more return on investment than ProConcept Marketing. However, Cann American is 1.27 times more volatile than ProConcept Marketing Group. It trades about 0.1 of its potential returns per unit of risk. ProConcept Marketing Group 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cann American Corp vs. ProConcept Marketing Group
Performance |
| Timeline |
| Cann American Corp |
| ProConcept Marketing |
Cann American and ProConcept Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cann American and ProConcept Marketing
The main advantage of trading using opposite Cann American and ProConcept Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cann American position performs unexpectedly, ProConcept Marketing 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 ProConcept Marketing will offset losses from the drop in ProConcept Marketing'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 |
| ProConcept Marketing vs. Cann American Corp | ProConcept Marketing vs. AAP Inc | ProConcept Marketing vs. Astra Veda | ProConcept Marketing 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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