Correlation Between Greater Cannabis and CuraScientific Corp
Can any of the company-specific risk be diversified away by investing in both Greater Cannabis and CuraScientific Corp 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 CuraScientific Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greater Cannabis and CuraScientific Corp, you can compare the effects of market volatilities on Greater Cannabis and CuraScientific Corp 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 CuraScientific Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Cannabis and CuraScientific Corp.
Diversification Opportunities for Greater Cannabis and CuraScientific Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greater and CuraScientific is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Greater Cannabis and CuraScientific Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CuraScientific Corp 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 CuraScientific Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CuraScientific Corp has no effect on the direction of Greater Cannabis i.e., Greater Cannabis and CuraScientific Corp go up and down completely randomly.
Pair Corralation between Greater Cannabis and CuraScientific Corp
Given the investment horizon of 90 days Greater Cannabis is expected to generate 3.67 times less return on investment than CuraScientific Corp. But when comparing it to its historical volatility, Greater Cannabis is 3.85 times less risky than CuraScientific Corp. It trades about 0.07 of its potential returns per unit of risk. CuraScientific Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5.00 in CuraScientific Corp on November 26, 2024 and sell it today you would lose (5.00) from holding CuraScientific Corp or give up 100.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Greater Cannabis vs. CuraScientific Corp
Performance |
Timeline |
Greater Cannabis |
CuraScientific Corp |
Greater Cannabis and CuraScientific Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Greater Cannabis and CuraScientific Corp
The main advantage of trading using opposite Greater Cannabis and CuraScientific Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Cannabis position performs unexpectedly, CuraScientific Corp 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 CuraScientific Corp will offset losses from the drop in CuraScientific Corp's long position.Greater Cannabis vs. Global Hemp Group | ||
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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