Correlation Between Cannabis Suisse and Galexxy Holdings
Can any of the company-specific risk be diversified away by investing in both Cannabis Suisse and Galexxy 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 Cannabis Suisse and Galexxy Holdings 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 Galexxy Holdings, you can compare the effects of market volatilities on Cannabis Suisse and Galexxy 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 Cannabis Suisse with a short position of Galexxy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannabis Suisse and Galexxy Holdings.
Diversification Opportunities for Cannabis Suisse and Galexxy Holdings
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cannabis and Galexxy is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis Suisse Corp and Galexxy Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galexxy Holdings 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 Galexxy Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galexxy Holdings has no effect on the direction of Cannabis Suisse i.e., Cannabis Suisse and Galexxy Holdings go up and down completely randomly.
Pair Corralation between Cannabis Suisse and Galexxy Holdings
Given the investment horizon of 90 days Cannabis Suisse Corp is expected to generate 9.89 times more return on investment than Galexxy Holdings. However, Cannabis Suisse is 9.89 times more volatile than Galexxy Holdings. It trades about 0.19 of its potential returns per unit of risk. Galexxy Holdings is currently generating about -0.13 per unit of risk. If you would invest 1.00 in Cannabis Suisse Corp on August 25, 2024 and sell it today you would lose (0.15) from holding Cannabis Suisse Corp or give up 15.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cannabis Suisse Corp vs. Galexxy Holdings
Performance |
| Timeline |
| Cannabis Suisse Corp |
| Galexxy Holdings |
Cannabis Suisse and Galexxy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannabis Suisse and Galexxy Holdings
The main advantage of trading using opposite Cannabis Suisse and Galexxy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannabis Suisse position performs unexpectedly, Galexxy 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 Galexxy Holdings will offset losses from the drop in Galexxy Holdings' long position.| Cannabis Suisse vs. Green Cures Botanical | Cannabis Suisse vs. Galexxy Holdings | Cannabis Suisse vs. Indoor Harvest Corp | Cannabis Suisse vs. Speakeasy Cannabis Club |
| Galexxy Holdings vs. Green Cures Botanical | Galexxy Holdings vs. Indoor Harvest Corp | Galexxy Holdings vs. Speakeasy Cannabis Club | Galexxy Holdings vs. City View Green |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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