Correlation Between Cann American and 1933 Industries
Can any of the company-specific risk be diversified away by investing in both Cann American and 1933 Industries 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 1933 Industries 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 1933 Industries, you can compare the effects of market volatilities on Cann American and 1933 Industries 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 1933 Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cann American and 1933 Industries.
Diversification Opportunities for Cann American and 1933 Industries
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cann and 1933 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cann American Corp and 1933 Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1933 Industries 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 1933 Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1933 Industries has no effect on the direction of Cann American i.e., Cann American and 1933 Industries go up and down completely randomly.
Pair Corralation between Cann American and 1933 Industries
Given the investment horizon of 90 days Cann American Corp is expected to generate 1.49 times more return on investment than 1933 Industries. However, Cann American is 1.49 times more volatile than 1933 Industries. It trades about 0.1 of its potential returns per unit of risk. 1933 Industries is currently generating about 0.04 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 Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Cann American Corp vs. 1933 Industries
Performance |
| Timeline |
| Cann American Corp |
| 1933 Industries |
Cann American and 1933 Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cann American and 1933 Industries
The main advantage of trading using opposite Cann American and 1933 Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cann American position performs unexpectedly, 1933 Industries 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 1933 Industries will offset losses from the drop in 1933 Industries' 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 |
| 1933 Industries vs. Integrated Cannabis Solutions | 1933 Industries vs. Cannabis Global | 1933 Industries vs. HempAmericana | 1933 Industries vs. Hempfusion Wellness |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |