Correlation Between Cann American and Nutranomics
Can any of the company-specific risk be diversified away by investing in both Cann American and Nutranomics 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 Nutranomics 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 Nutranomics, you can compare the effects of market volatilities on Cann American and Nutranomics 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 Nutranomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cann American and Nutranomics.
Diversification Opportunities for Cann American and Nutranomics
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cann and Nutranomics is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cann American Corp and Nutranomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutranomics 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 Nutranomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutranomics has no effect on the direction of Cann American i.e., Cann American and Nutranomics go up and down completely randomly.
Pair Corralation between Cann American and Nutranomics
Given the investment horizon of 90 days Cann American is expected to generate 8.7 times less return on investment than Nutranomics. But when comparing it to its historical volatility, Cann American Corp is 5.94 times less risky than Nutranomics. It trades about 0.08 of its potential returns per unit of risk. Nutranomics is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Nutranomics on August 26, 2024 and sell it today you would earn a total of 0.01 from holding Nutranomics or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cann American Corp vs. Nutranomics
Performance |
| Timeline |
| Cann American Corp |
| Nutranomics |
Cann American and Nutranomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cann American and Nutranomics
The main advantage of trading using opposite Cann American and Nutranomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cann American position performs unexpectedly, Nutranomics 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 Nutranomics will offset losses from the drop in Nutranomics' 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 |
| Nutranomics vs. Green Cures Botanical | Nutranomics vs. Indoor Harvest Corp | Nutranomics vs. Speakeasy Cannabis Club | Nutranomics vs. Benchmark Botanics |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |