Correlation Between Cronos and Molecule Holdings
Can any of the company-specific risk be diversified away by investing in both Cronos and Molecule Holdings 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 Cronos and Molecule Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cronos Group and Molecule Holdings, you can compare the effects of market volatilities on Cronos and Molecule Holdings 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 Cronos with a short position of Molecule Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cronos and Molecule Holdings.
Diversification Opportunities for Cronos and Molecule Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cronos and Molecule is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cronos Group and Molecule Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molecule Holdings and Cronos 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 Cronos Group are associated (or correlated) with Molecule Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molecule Holdings has no effect on the direction of Cronos i.e., Cronos and Molecule Holdings go up and down completely randomly.
Pair Corralation between Cronos and Molecule Holdings
If you would invest 209.00 in Cronos Group on September 1, 2024 and sell it today you would lose (1.00) from holding Cronos Group or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cronos Group vs. Molecule Holdings
Performance |
| Timeline |
| Cronos Group |
| Molecule Holdings |
Cronos and Molecule Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cronos and Molecule Holdings
The main advantage of trading using opposite Cronos and Molecule Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cronos position performs unexpectedly, Molecule Holdings 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 Molecule Holdings will offset losses from the drop in Molecule Holdings' long position.| Cronos vs. OrganiGram Holdings | Cronos vs. Aurora Cannabis | Cronos vs. SNDL Inc | Cronos vs. Canopy Growth Corp |
| Molecule Holdings vs. Hypera SA | Molecule Holdings vs. YourWay Cannabis Brands | Molecule Holdings vs. Cumberland Pharmaceuticals | Molecule Holdings vs. Speakeasy Cannabis Club |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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