Correlation Between Global Hemp and Shawcor
Can any of the company-specific risk be diversified away by investing in both Global Hemp and Shawcor 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 Global Hemp and Shawcor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Hemp Group and Shawcor, you can compare the effects of market volatilities on Global Hemp and Shawcor 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 Global Hemp with a short position of Shawcor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Hemp and Shawcor.
Diversification Opportunities for Global Hemp and Shawcor
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Shawcor is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Global Hemp Group and Shawcor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shawcor and Global Hemp 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 Global Hemp Group are associated (or correlated) with Shawcor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shawcor has no effect on the direction of Global Hemp i.e., Global Hemp and Shawcor go up and down completely randomly.
Pair Corralation between Global Hemp and Shawcor
If you would invest 1,513 in Shawcor on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Shawcor or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Global Hemp Group vs. Shawcor
Performance |
| Timeline |
| Global Hemp Group |
| Shawcor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Hemp and Shawcor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Hemp and Shawcor
The main advantage of trading using opposite Global Hemp and Shawcor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Hemp position performs unexpectedly, Shawcor 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 Shawcor will offset losses from the drop in Shawcor's long position.| Global Hemp vs. Cann American Corp | Global Hemp vs. Speakeasy Cannabis Club | Global Hemp vs. Benchmark Botanics | Global Hemp vs. Link Reservations |
| Shawcor vs. STEP Energy Services | Shawcor vs. Total Energy Services | Shawcor vs. Trican Well Service | Shawcor vs. High Arctic Energy |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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