Correlation Between Greater Cannabis and Genomma Lab
Can any of the company-specific risk be diversified away by investing in both Greater Cannabis and Genomma Lab 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 Genomma Lab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greater Cannabis and Genomma Lab Internacional, you can compare the effects of market volatilities on Greater Cannabis and Genomma Lab 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 Genomma Lab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Cannabis and Genomma Lab.
Diversification Opportunities for Greater Cannabis and Genomma Lab
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Greater and Genomma is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Greater Cannabis and Genomma Lab Internacional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genomma Lab Internacional 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 Genomma Lab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genomma Lab Internacional has no effect on the direction of Greater Cannabis i.e., Greater Cannabis and Genomma Lab go up and down completely randomly.
Pair Corralation between Greater Cannabis and Genomma Lab
Given the investment horizon of 90 days Greater Cannabis is expected to generate 5.17 times more return on investment than Genomma Lab. However, Greater Cannabis is 5.17 times more volatile than Genomma Lab Internacional. It trades about 0.06 of its potential returns per unit of risk. Genomma Lab Internacional is currently generating about 0.21 per unit of risk. If you would invest 0.04 in Greater Cannabis on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Greater Cannabis or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Greater Cannabis vs. Genomma Lab Internacional
Performance |
| Timeline |
| Greater Cannabis |
| Genomma Lab Internacional |
Greater Cannabis and Genomma Lab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greater Cannabis and Genomma Lab
The main advantage of trading using opposite Greater Cannabis and Genomma Lab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Cannabis position performs unexpectedly, Genomma Lab 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 Genomma Lab will offset losses from the drop in Genomma Lab's long position.| Greater Cannabis vs. Holloman Energy Corp | Greater Cannabis vs. cbdMD Inc | Greater Cannabis vs. Evolus Inc | Greater Cannabis vs. CV Sciences |
| Genomma Lab vs. Speakeasy Cannabis Club | Genomma Lab vs. City View Green | Genomma Lab vs. Benchmark Botanics | Genomma Lab vs. Hypera SA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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