Correlation Between Cannabis Suisse and Global Hemp
Can any of the company-specific risk be diversified away by investing in both Cannabis Suisse and Global Hemp 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 Global Hemp 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 Global Hemp Group, you can compare the effects of market volatilities on Cannabis Suisse and Global Hemp 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 Global Hemp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannabis Suisse and Global Hemp.
Diversification Opportunities for Cannabis Suisse and Global Hemp
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cannabis and Global is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis Suisse Corp and Global Hemp Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Hemp Group 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 Global Hemp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Hemp Group has no effect on the direction of Cannabis Suisse i.e., Cannabis Suisse and Global Hemp go up and down completely randomly.
Pair Corralation between Cannabis Suisse and Global Hemp
Given the investment horizon of 90 days Cannabis Suisse Corp is expected to generate 6.88 times more return on investment than Global Hemp. However, Cannabis Suisse is 6.88 times more volatile than Global Hemp Group. It trades about 0.21 of its potential returns per unit of risk. Global Hemp Group is currently generating about 0.06 per unit of risk. If you would invest 1.00 in Cannabis Suisse Corp on August 28, 2024 and sell it today you would earn a total of 0.80 from holding Cannabis Suisse Corp or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cannabis Suisse Corp vs. Global Hemp Group
Performance |
| Timeline |
| Cannabis Suisse Corp |
| Global Hemp Group |
Cannabis Suisse and Global Hemp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannabis Suisse and Global Hemp
The main advantage of trading using opposite Cannabis Suisse and Global Hemp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannabis Suisse position performs unexpectedly, Global Hemp 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 Global Hemp will offset losses from the drop in Global Hemp'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 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |