Correlation Between Greater Cannabis and Cannabis Global
Can any of the company-specific risk be diversified away by investing in both Greater Cannabis and Cannabis Global 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 Greater Cannabis and Cannabis Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greater Cannabis and Cannabis Global, you can compare the effects of market volatilities on Greater Cannabis and Cannabis Global 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 Greater Cannabis with a short position of Cannabis Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Cannabis and Cannabis Global.
Diversification Opportunities for Greater Cannabis and Cannabis Global
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greater and Cannabis is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Greater Cannabis and Cannabis Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Global and Greater Cannabis 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 Greater Cannabis are associated (or correlated) with Cannabis Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Global has no effect on the direction of Greater Cannabis i.e., Greater Cannabis and Cannabis Global go up and down completely randomly.
Pair Corralation between Greater Cannabis and Cannabis Global
Given the investment horizon of 90 days Greater Cannabis is expected to generate 82.02 times less return on investment than Cannabis Global. But when comparing it to its historical volatility, Greater Cannabis is 17.85 times less risky than Cannabis Global. It trades about 0.05 of its potential returns per unit of risk. Cannabis Global is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 0.03 in Cannabis Global on August 26, 2024 and sell it today you would lose (0.02) from holding Cannabis Global or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greater Cannabis vs. Cannabis Global
Performance |
| Timeline |
| Greater Cannabis |
| Cannabis Global |
Greater Cannabis and Cannabis Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greater Cannabis and Cannabis Global
The main advantage of trading using opposite Greater Cannabis and Cannabis Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Cannabis position performs unexpectedly, Cannabis Global 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 Cannabis Global will offset losses from the drop in Cannabis Global's long position.| Greater Cannabis vs. Global Hemp Group | Greater Cannabis vs. Cannabis Suisse Corp | Greater Cannabis vs. Maple Leaf Green | Greater Cannabis vs. Mc Endvrs |
| Cannabis Global vs. Cann American Corp | Cannabis Global vs. GelStat Corp | Cannabis Global vs. Green Cures Botanical | Cannabis Global vs. Greater Cannabis |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |