Correlation Between Greater Cannabis and MedMira
Can any of the company-specific risk be diversified away by investing in both Greater Cannabis and MedMira 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 MedMira into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greater Cannabis and MedMira, you can compare the effects of market volatilities on Greater Cannabis and MedMira 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 MedMira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Cannabis and MedMira.
Diversification Opportunities for Greater Cannabis and MedMira
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greater and MedMira is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Greater Cannabis and MedMira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MedMira 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 MedMira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MedMira has no effect on the direction of Greater Cannabis i.e., Greater Cannabis and MedMira go up and down completely randomly.
Pair Corralation between Greater Cannabis and MedMira
Given the investment horizon of 90 days Greater Cannabis is expected to generate 1.29 times less return on investment than MedMira. In addition to that, Greater Cannabis is 4.52 times more volatile than MedMira. It trades about 0.02 of its total potential returns per unit of risk. MedMira is currently generating about 0.09 per unit of volatility. If you would invest 5.00 in MedMira on September 13, 2024 and sell it today you would earn a total of 0.50 from holding MedMira or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Greater Cannabis vs. MedMira
Performance |
| Timeline |
| Greater Cannabis |
| MedMira |
Greater Cannabis and MedMira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greater Cannabis and MedMira
The main advantage of trading using opposite Greater Cannabis and MedMira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Cannabis position performs unexpectedly, MedMira 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 MedMira will offset losses from the drop in MedMira's long position.| Greater Cannabis vs. 4Front Ventures Corp | Greater Cannabis vs. Khiron Life Sciences | Greater Cannabis vs. BellRock Brands | Greater Cannabis vs. Elixinol Global |
| MedMira vs. Grey Cloak Tech | MedMira vs. CuraScientific Corp | MedMira vs. Love Hemp Group | MedMira 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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