Correlation Between Greater Cannabis and Cannabis Suisse
Can any of the company-specific risk be diversified away by investing in both Greater Cannabis and Cannabis Suisse 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 Suisse 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 Suisse Corp, you can compare the effects of market volatilities on Greater Cannabis and Cannabis Suisse 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 Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Cannabis and Cannabis Suisse.
Diversification Opportunities for Greater Cannabis and Cannabis Suisse
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greater and Cannabis is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Greater Cannabis and Cannabis Suisse Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Suisse 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 Cannabis Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Suisse Corp has no effect on the direction of Greater Cannabis i.e., Greater Cannabis and Cannabis Suisse go up and down completely randomly.
Pair Corralation between Greater Cannabis and Cannabis Suisse
Given the investment horizon of 90 days Greater Cannabis is expected to generate 23.0 times less return on investment than Cannabis Suisse. But when comparing it to its historical volatility, Greater Cannabis is 4.65 times less risky than Cannabis Suisse. It trades about 0.03 of its potential returns per unit of risk. Cannabis Suisse Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2.70 in Cannabis Suisse Corp on August 29, 2024 and sell it today you would lose (0.90) from holding Cannabis Suisse Corp or give up 33.33% 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 Suisse Corp
Performance |
| Timeline |
| Greater Cannabis |
| Cannabis Suisse Corp |
Greater Cannabis and Cannabis Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greater Cannabis and Cannabis Suisse
The main advantage of trading using opposite Greater Cannabis and Cannabis Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Cannabis position performs unexpectedly, Cannabis Suisse 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 Suisse will offset losses from the drop in Cannabis Suisse'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 Suisse vs. Greater Cannabis | Cannabis Suisse vs. Global Hemp Group | Cannabis Suisse vs. Maple Leaf Green | Cannabis Suisse 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 Stocks Directory module to find actively traded stocks across global markets.
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