Correlation Between Greater Cannabis and Sohm
Can any of the company-specific risk be diversified away by investing in both Greater Cannabis and Sohm 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 Sohm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greater Cannabis and Sohm Inc, you can compare the effects of market volatilities on Greater Cannabis and Sohm 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 Sohm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Cannabis and Sohm.
Diversification Opportunities for Greater Cannabis and Sohm
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greater and Sohm is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Greater Cannabis and Sohm Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sohm Inc 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 Sohm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sohm Inc has no effect on the direction of Greater Cannabis i.e., Greater Cannabis and Sohm go up and down completely randomly.
Pair Corralation between Greater Cannabis and Sohm
If you would invest 0.07 in Greater Cannabis on August 25, 2024 and sell it today you would lose (0.03) from holding Greater Cannabis or give up 42.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Greater Cannabis vs. Sohm Inc
Performance |
| Timeline |
| Greater Cannabis |
| Sohm Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greater Cannabis and Sohm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greater Cannabis and Sohm
The main advantage of trading using opposite Greater Cannabis and Sohm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Cannabis position performs unexpectedly, Sohm 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 Sohm will offset losses from the drop in Sohm'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 |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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