Correlation Between Grand Havana and MamaMancinis Holdings
Can any of the company-specific risk be diversified away by investing in both Grand Havana and MamaMancinis Holdings 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 Grand Havana and MamaMancinis Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Havana and MamaMancinis Holdings, you can compare the effects of market volatilities on Grand Havana and MamaMancinis Holdings 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 Grand Havana with a short position of MamaMancinis Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Havana and MamaMancinis Holdings.
Diversification Opportunities for Grand Havana and MamaMancinis Holdings
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grand and MamaMancinis is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Grand Havana and MamaMancinis Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MamaMancinis Holdings and Grand Havana 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 Grand Havana are associated (or correlated) with MamaMancinis Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MamaMancinis Holdings has no effect on the direction of Grand Havana i.e., Grand Havana and MamaMancinis Holdings go up and down completely randomly.
Pair Corralation between Grand Havana and MamaMancinis Holdings
Given the investment horizon of 90 days Grand Havana is expected to generate 3.81 times more return on investment than MamaMancinis Holdings. However, Grand Havana is 3.81 times more volatile than MamaMancinis Holdings. It trades about 0.05 of its potential returns per unit of risk. MamaMancinis Holdings is currently generating about 0.15 per unit of risk. If you would invest 0.27 in Grand Havana on August 27, 2024 and sell it today you would lose (0.21) from holding Grand Havana or give up 77.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.71% |
| Values | Daily Returns |
Grand Havana vs. MamaMancinis Holdings
Performance |
| Timeline |
| Grand Havana |
| MamaMancinis Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grand Havana and MamaMancinis Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Havana and MamaMancinis Holdings
The main advantage of trading using opposite Grand Havana and MamaMancinis Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Havana position performs unexpectedly, MamaMancinis Holdings 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 MamaMancinis Holdings will offset losses from the drop in MamaMancinis Holdings' long position.| Grand Havana vs. Right On Brands | Grand Havana vs. BioAdaptives | Grand Havana vs. Yuenglings Ice Cream | Grand Havana vs. Bit Origin |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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