Correlation Between Goodbody Health and Cann American
Can any of the company-specific risk be diversified away by investing in both Goodbody Health and Cann American 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 Goodbody Health and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodbody Health and Cann American Corp, you can compare the effects of market volatilities on Goodbody Health and Cann American 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 Goodbody Health with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbody Health and Cann American.
Diversification Opportunities for Goodbody Health and Cann American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goodbody and Cann is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goodbody Health and Cann American Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cann American Corp and Goodbody Health 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 Goodbody Health are associated (or correlated) with Cann American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cann American Corp has no effect on the direction of Goodbody Health i.e., Goodbody Health and Cann American go up and down completely randomly.
Pair Corralation between Goodbody Health and Cann American
Assuming the 90 days horizon Goodbody Health is expected to generate 4.51 times more return on investment than Cann American. However, Goodbody Health is 4.51 times more volatile than Cann American Corp. It trades about 0.09 of its potential returns per unit of risk. Cann American Corp is currently generating about 0.07 per unit of risk. If you would invest 3.00 in Goodbody Health on September 4, 2024 and sell it today you would lose (3.00) from holding Goodbody Health or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Goodbody Health vs. Cann American Corp
Performance |
| Timeline |
| Goodbody Health |
| Cann American Corp |
Goodbody Health and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodbody Health and Cann American
The main advantage of trading using opposite Goodbody Health and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodbody Health position performs unexpectedly, Cann American 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 Cann American will offset losses from the drop in Cann American's long position.| Goodbody Health vs. Cann American Corp | Goodbody Health vs. Speakeasy Cannabis Club | Goodbody Health vs. Benchmark Botanics | Goodbody Health vs. Link Reservations |
| Cann American vs. XCPCNL Business Services | Cann American vs. Golden Developing Solutions | Cann American vs. Indo Global Exchange | Cann American vs. Cgrowth Capital |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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