Correlation Between GABY and Nova Cannabis
Can any of the company-specific risk be diversified away by investing in both GABY and Nova 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 GABY and Nova Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GABY Inc and Nova Cannabis, you can compare the effects of market volatilities on GABY and Nova 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 GABY with a short position of Nova Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of GABY and Nova Cannabis.
Diversification Opportunities for GABY and Nova Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GABY and Nova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GABY Inc and Nova Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Cannabis and GABY 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 GABY Inc are associated (or correlated) with Nova Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Cannabis has no effect on the direction of GABY i.e., GABY and Nova Cannabis go up and down completely randomly.
Pair Corralation between GABY and Nova Cannabis
If you would invest 126.00 in Nova Cannabis on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Nova Cannabis or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GABY Inc vs. Nova Cannabis
Performance |
| Timeline |
| GABY Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nova Cannabis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GABY and Nova Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GABY and Nova Cannabis
The main advantage of trading using opposite GABY and Nova Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GABY position performs unexpectedly, Nova 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 Nova Cannabis will offset losses from the drop in Nova Cannabis' long position.| GABY vs. First Ship Lease | GABY vs. Delek Logistics Partners | GABY vs. MYT Netherlands Parent | GABY vs. Saia Inc |
| Nova Cannabis vs. Leafly Holdings | Nova Cannabis vs. Leafly Holdings | Nova Cannabis vs. SunLink Health Systems | Nova Cannabis vs. Kiaro Holdings Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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