Correlation Between Goodbody Health and Greater Cannabis
Can any of the company-specific risk be diversified away by investing in both Goodbody Health and Greater Cannabis 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 Greater Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodbody Health and Greater Cannabis, you can compare the effects of market volatilities on Goodbody Health and Greater Cannabis 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 Greater Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodbody Health and Greater Cannabis.
Diversification Opportunities for Goodbody Health and Greater Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goodbody and Greater is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goodbody Health and Greater Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Cannabis 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 Greater Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Cannabis has no effect on the direction of Goodbody Health i.e., Goodbody Health and Greater Cannabis go up and down completely randomly.
Pair Corralation between Goodbody Health and Greater Cannabis
Assuming the 90 days horizon Goodbody Health is expected to generate 4.88 times more return on investment than Greater Cannabis. However, Goodbody Health is 4.88 times more volatile than Greater Cannabis. It trades about 0.06 of its potential returns per unit of risk. Greater Cannabis is currently generating about 0.04 per unit of risk. If you would invest 0.00 in Goodbody Health on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Goodbody Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodbody Health vs. Greater Cannabis
Performance |
| Timeline |
| Goodbody Health |
| Greater Cannabis |
Goodbody Health and Greater Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodbody Health and Greater Cannabis
The main advantage of trading using opposite Goodbody Health and Greater Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodbody Health position performs unexpectedly, Greater Cannabis 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 Greater Cannabis will offset losses from the drop in Greater Cannabis' long position.| Goodbody Health vs. Anything Tech Media | Goodbody Health vs. Nutralife Biosciences | Goodbody Health vs. Merck KGaA ADR | Goodbody Health vs. Mc Endvrs |
| 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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