Correlation Between City View and Khiron Life
Can any of the company-specific risk be diversified away by investing in both City View and Khiron Life 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 Khiron Life 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 Khiron Life Sciences, you can compare the effects of market volatilities on City View and Khiron Life 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 Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of City View and Khiron Life.
Diversification Opportunities for City View and Khiron Life
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between City and Khiron is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding City View Green and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences 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 Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of City View i.e., City View and Khiron Life go up and down completely randomly.
Pair Corralation between City View and Khiron Life
Assuming the 90 days horizon City View is expected to generate 13.75 times less return on investment than Khiron Life. But when comparing it to its historical volatility, City View Green is 13.95 times less risky than Khiron Life. It trades about 0.19 of its potential returns per unit of risk. Khiron Life Sciences is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Khiron Life Sciences on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Khiron Life Sciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
City View Green vs. Khiron Life Sciences
Performance |
| Timeline |
| City View Green |
| Khiron Life Sciences |
City View and Khiron Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City View and Khiron Life
The main advantage of trading using opposite City View and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City View position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.| City View vs. Green Cures Botanical | City View vs. Galexxy Holdings | City View vs. Indoor Harvest Corp | City View vs. Speakeasy Cannabis Club |
| Khiron Life vs. Blueberries Medical Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. City View Green | Khiron Life vs. Benchmark Botanics |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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