Correlation Between Gemina Laboratories and Greater Cannabis
Can any of the company-specific risk be diversified away by investing in both Gemina Laboratories 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 Gemina Laboratories and Greater Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gemina Laboratories and Greater Cannabis, you can compare the effects of market volatilities on Gemina Laboratories 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 Gemina Laboratories with a short position of Greater Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemina Laboratories and Greater Cannabis.
Diversification Opportunities for Gemina Laboratories and Greater Cannabis
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gemina and Greater is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gemina Laboratories and Greater Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Cannabis and Gemina Laboratories 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 Gemina Laboratories 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 Gemina Laboratories i.e., Gemina Laboratories and Greater Cannabis go up and down completely randomly.
Pair Corralation between Gemina Laboratories and Greater Cannabis
Assuming the 90 days horizon Gemina Laboratories is expected to generate 0.6 times more return on investment than Greater Cannabis. However, Gemina Laboratories is 1.66 times less risky than Greater Cannabis. It trades about 0.29 of its potential returns per unit of risk. Greater Cannabis is currently generating about 0.14 per unit of risk. If you would invest 34.00 in Gemina Laboratories on September 3, 2024 and sell it today you would earn a total of 21.00 from holding Gemina Laboratories or generate 61.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gemina Laboratories vs. Greater Cannabis
Performance |
| Timeline |
| Gemina Laboratories |
| Greater Cannabis |
Gemina Laboratories and Greater Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemina Laboratories and Greater Cannabis
The main advantage of trading using opposite Gemina Laboratories and Greater Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemina Laboratories 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.| Gemina Laboratories vs. Therapeutic Solutions International | Gemina Laboratories vs. Alpha Cognition | Gemina Laboratories vs. Regen BioPharma | Gemina Laboratories vs. Vg Life Sciences |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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