Correlation Between Global Hemp and XTM
Can any of the company-specific risk be diversified away by investing in both Global Hemp and XTM 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 XTM 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 XTM Inc, you can compare the effects of market volatilities on Global Hemp and XTM 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 XTM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Hemp and XTM.
Diversification Opportunities for Global Hemp and XTM
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and XTM is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Global Hemp Group and XTM Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTM Inc 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 XTM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTM Inc has no effect on the direction of Global Hemp i.e., Global Hemp and XTM go up and down completely randomly.
Pair Corralation between Global Hemp and XTM
Assuming the 90 days horizon Global Hemp Group is expected to generate 1.79 times more return on investment than XTM. However, Global Hemp is 1.79 times more volatile than XTM Inc. It trades about 0.12 of its potential returns per unit of risk. XTM Inc is currently generating about 0.07 per unit of risk. If you would invest 0.88 in Global Hemp Group on August 27, 2024 and sell it today you would earn a total of 0.62 from holding Global Hemp Group or generate 70.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Hemp Group vs. XTM Inc
Performance |
| Timeline |
| Global Hemp Group |
| XTM Inc |
Global Hemp and XTM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Hemp and XTM
The main advantage of trading using opposite Global Hemp and XTM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Hemp position performs unexpectedly, XTM 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 XTM will offset losses from the drop in XTM's long position.| Global Hemp vs. Greater Cannabis | Global Hemp vs. Cannabis Suisse Corp | Global Hemp vs. Maple Leaf Green | Global Hemp vs. Mc Endvrs |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |