Correlation Between Centr Brands and Integrated Cannabis
Can any of the company-specific risk be diversified away by investing in both Centr Brands and Integrated Cannabis 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 Centr Brands and Integrated Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centr Brands Corp and Integrated Cannabis Solutions, you can compare the effects of market volatilities on Centr Brands and Integrated Cannabis 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 Centr Brands with a short position of Integrated Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centr Brands and Integrated Cannabis.
Diversification Opportunities for Centr Brands and Integrated Cannabis
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centr and Integrated is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Centr Brands Corp and Integrated Cannabis Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Cannabis and Centr Brands 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 Centr Brands Corp are associated (or correlated) with Integrated Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Cannabis has no effect on the direction of Centr Brands i.e., Centr Brands and Integrated Cannabis go up and down completely randomly.
Pair Corralation between Centr Brands and Integrated Cannabis
If you would invest 5.38 in Centr Brands Corp on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Centr Brands Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Centr Brands Corp vs. Integrated Cannabis Solutions
Performance |
| Timeline |
| Centr Brands Corp |
| Integrated Cannabis |
Centr Brands and Integrated Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centr Brands and Integrated Cannabis
The main advantage of trading using opposite Centr Brands and Integrated Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centr Brands position performs unexpectedly, Integrated Cannabis 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 Integrated Cannabis will offset losses from the drop in Integrated Cannabis' long position.| Centr Brands vs. Bionoid Pharma | Centr Brands vs. CTT Pharmaceutical Holdings | Centr Brands vs. Alterola Biotech | Centr Brands vs. Canntab Therapeutics Limited |
| Integrated Cannabis vs. Speakeasy Cannabis Club | Integrated Cannabis vs. City View Green | Integrated Cannabis vs. Benchmark Botanics | Integrated Cannabis vs. Ravenquest Biomed |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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