Correlation Between City View and Im Cannabis
Can any of the company-specific risk be diversified away by investing in both City View and Im 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 City View and Im Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City View Green and Im Cannabis Corp, you can compare the effects of market volatilities on City View and Im 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 City View with a short position of Im Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of City View and Im Cannabis.
Diversification Opportunities for City View and Im Cannabis
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between City and IMCC is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding City View Green and Im Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Im Cannabis Corp and City View 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 City View Green are associated (or correlated) with Im Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Im Cannabis Corp has no effect on the direction of City View i.e., City View and Im Cannabis go up and down completely randomly.
Pair Corralation between City View and Im Cannabis
Assuming the 90 days horizon City View Green is expected to generate 1.49 times more return on investment than Im Cannabis. However, City View is 1.49 times more volatile than Im Cannabis Corp. It trades about 0.08 of its potential returns per unit of risk. Im Cannabis Corp is currently generating about 0.06 per unit of risk. If you would invest 0.48 in City View Green on September 1, 2024 and sell it today you would earn a total of 0.87 from holding City View Green or generate 181.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
City View Green vs. Im Cannabis Corp
Performance |
| Timeline |
| City View Green |
| Im Cannabis Corp |
City View and Im Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City View and Im Cannabis
The main advantage of trading using opposite City View and Im Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City View position performs unexpectedly, Im 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 Im Cannabis will offset losses from the drop in Im Cannabis' long position.| City View vs. Benchmark Botanics | City View vs. Speakeasy Cannabis Club | City View vs. BC Craft Supply | City View vs. Ravenquest Biomed |
| Im Cannabis vs. Clever Leaves Holdings | Im Cannabis vs. Khiron Life Sciences | Im Cannabis vs. Allied Corp | Im Cannabis vs. Biofrontera |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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