Correlation Between Cannabis Suisse and China Infrastructure
Can any of the company-specific risk be diversified away by investing in both Cannabis Suisse and China Infrastructure 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 Cannabis Suisse and China Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannabis Suisse Corp and China Infrastructure Construction, you can compare the effects of market volatilities on Cannabis Suisse and China Infrastructure 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 Cannabis Suisse with a short position of China Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannabis Suisse and China Infrastructure.
Diversification Opportunities for Cannabis Suisse and China Infrastructure
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cannabis and China is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis Suisse Corp and China Infrastructure Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Infrastructure and Cannabis Suisse 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 Cannabis Suisse Corp are associated (or correlated) with China Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Infrastructure has no effect on the direction of Cannabis Suisse i.e., Cannabis Suisse and China Infrastructure go up and down completely randomly.
Pair Corralation between Cannabis Suisse and China Infrastructure
If you would invest 2.30 in Cannabis Suisse Corp on August 29, 2024 and sell it today you would lose (0.40) from holding Cannabis Suisse Corp or give up 17.39% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 0.32% |
Values | Daily Returns |
Cannabis Suisse Corp vs. China Infrastructure Construct
Performance |
Timeline |
Cannabis Suisse Corp |
China Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cannabis Suisse and China Infrastructure Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cannabis Suisse and China Infrastructure
The main advantage of trading using opposite Cannabis Suisse and China Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannabis Suisse position performs unexpectedly, China Infrastructure 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 China Infrastructure will offset losses from the drop in China Infrastructure's long position.Cannabis Suisse vs. Greater Cannabis | Cannabis Suisse vs. Global Hemp Group | Cannabis Suisse vs. Maple Leaf Green | Cannabis Suisse vs. Mc Endvrs |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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