Correlation Between Cogstate and Medical Cannabis
Can any of the company-specific risk be diversified away by investing in both Cogstate and Medical 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 Cogstate and Medical Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogstate Limited and Medical Cannabis Pay, you can compare the effects of market volatilities on Cogstate and Medical 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 Cogstate with a short position of Medical Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogstate and Medical Cannabis.
Diversification Opportunities for Cogstate and Medical Cannabis
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cogstate and Medical is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cogstate Limited and Medical Cannabis Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Cannabis Pay and Cogstate 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 Cogstate Limited are associated (or correlated) with Medical Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Cannabis Pay has no effect on the direction of Cogstate i.e., Cogstate and Medical Cannabis go up and down completely randomly.
Pair Corralation between Cogstate and Medical Cannabis
Assuming the 90 days horizon Cogstate is expected to generate 119.62 times less return on investment than Medical Cannabis. But when comparing it to its historical volatility, Cogstate Limited is 12.17 times less risky than Medical Cannabis. It trades about 0.01 of its potential returns per unit of risk. Medical Cannabis Pay is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Medical Cannabis Pay on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Medical Cannabis Pay or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogstate Limited vs. Medical Cannabis Pay
Performance |
| Timeline |
| Cogstate Limited |
| Medical Cannabis Pay |
Cogstate and Medical Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogstate and Medical Cannabis
The main advantage of trading using opposite Cogstate and Medical Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogstate position performs unexpectedly, Medical 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 Medical Cannabis will offset losses from the drop in Medical Cannabis' long position.| Cogstate vs. Caduceus Software Systems | Cogstate vs. Cloud DX | Cogstate vs. Cognetivity Neurosciences | Cogstate vs. Healthcare Integrated Technologies |
| Medical Cannabis vs. Nouveau Life Pharmaceuticals | Medical Cannabis vs. PPJ Healthcare Enterprises | Medical Cannabis vs. eWellness Healthcare Corp | Medical Cannabis vs. M3 Inc |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |