Correlation Between Greater Cannabis and Juva Life
Can any of the company-specific risk be diversified away by investing in both Greater Cannabis and Juva Life 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 Juva Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greater Cannabis and Juva Life, you can compare the effects of market volatilities on Greater Cannabis and Juva Life 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 Juva Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Cannabis and Juva Life.
Diversification Opportunities for Greater Cannabis and Juva Life
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Greater and Juva is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Greater Cannabis and Juva Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juva Life 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 Juva Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juva Life has no effect on the direction of Greater Cannabis i.e., Greater Cannabis and Juva Life go up and down completely randomly.
Pair Corralation between Greater Cannabis and Juva Life
If you would invest 0.01 in Juva Life on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Juva Life or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greater Cannabis vs. Juva Life
Performance |
| Timeline |
| Greater Cannabis |
| Juva Life |
Greater Cannabis and Juva Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greater Cannabis and Juva Life
The main advantage of trading using opposite Greater Cannabis and Juva Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Cannabis position performs unexpectedly, Juva Life 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 Juva Life will offset losses from the drop in Juva Life'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 |
| Juva Life vs. City View Green | Juva Life vs. Speakeasy Cannabis Club | Juva Life vs. Benchmark Botanics | Juva Life vs. Pure Harvest 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |