Correlation Between Easton Pharmaceutica and Green Cures
Can any of the company-specific risk be diversified away by investing in both Easton Pharmaceutica and Green Cures 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 Easton Pharmaceutica and Green Cures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easton Pharmaceutica and Green Cures Botanical, you can compare the effects of market volatilities on Easton Pharmaceutica and Green Cures 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 Easton Pharmaceutica with a short position of Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easton Pharmaceutica and Green Cures.
Diversification Opportunities for Easton Pharmaceutica and Green Cures
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Easton and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Easton Pharmaceutica and Green Cures Botanical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cures Botanical and Easton Pharmaceutica 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 Easton Pharmaceutica are associated (or correlated) with Green Cures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cures Botanical has no effect on the direction of Easton Pharmaceutica i.e., Easton Pharmaceutica and Green Cures go up and down completely randomly.
Pair Corralation between Easton Pharmaceutica and Green Cures
Given the investment horizon of 90 days Easton Pharmaceutica is expected to generate 1.0 times less return on investment than Green Cures. In addition to that, Easton Pharmaceutica is 2.12 times more volatile than Green Cures Botanical. It trades about 0.09 of its total potential returns per unit of risk. Green Cures Botanical is currently generating about 0.2 per unit of volatility. If you would invest 0.01 in Green Cures Botanical on August 28, 2024 and sell it today you would earn a total of 0.01 from holding Green Cures Botanical or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.52% |
| Values | Daily Returns |
Easton Pharmaceutica vs. Green Cures Botanical
Performance |
| Timeline |
| Easton Pharmaceutica |
| Green Cures Botanical |
Easton Pharmaceutica and Green Cures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easton Pharmaceutica and Green Cures
The main advantage of trading using opposite Easton Pharmaceutica and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easton Pharmaceutica position performs unexpectedly, Green Cures 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 Green Cures will offset losses from the drop in Green Cures' long position.| Easton Pharmaceutica vs. Medicure | Easton Pharmaceutica vs. INC Research Holdings | Easton Pharmaceutica vs. Speakeasy Cannabis Club | Easton Pharmaceutica 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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