Correlation Between Cann American and Pure Global
Can any of the company-specific risk be diversified away by investing in both Cann American and Pure Global 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 Pure Global 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 Pure Global Cannabis, you can compare the effects of market volatilities on Cann American and Pure Global 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 Pure Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cann American and Pure Global.
Diversification Opportunities for Cann American and Pure Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cann and Pure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cann American Corp and Pure Global Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Global Cannabis 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 Pure Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Global Cannabis has no effect on the direction of Cann American i.e., Cann American and Pure Global go up and down completely randomly.
Pair Corralation between Cann American and Pure Global
If you would invest 0.25 in Cann American Corp on November 26, 2024 and sell it today you would earn a total of 0.20 from holding Cann American Corp or generate 80.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.0% |
Values | Daily Returns |
Cann American Corp vs. Pure Global Cannabis
Performance |
Timeline |
Cann American Corp |
Pure Global Cannabis |
Cann American and Pure Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cann American and Pure Global
The main advantage of trading using opposite Cann American and Pure Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cann American position performs unexpectedly, Pure Global 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 Pure Global will offset losses from the drop in Pure Global's long position.Cann American vs. XCPCNL Business Services | ||
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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