Correlation Between GM and IM Cannabis
Can any of the company-specific risk be diversified away by investing in both GM and IM 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 GM and IM Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and IM Cannabis Corp, you can compare the effects of market volatilities on GM and IM 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 GM with a short position of IM Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and IM Cannabis.
Diversification Opportunities for GM and IM Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and IMCND is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and IM Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IM Cannabis Corp and GM 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 General Motors are associated (or correlated) with IM Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IM Cannabis Corp has no effect on the direction of GM i.e., GM and IM Cannabis go up and down completely randomly.
Pair Corralation between GM and IM Cannabis
If you would invest (100.00) in IM Cannabis Corp on November 4, 2024 and sell it today you would earn a total of 100.00 from holding IM Cannabis Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. IM Cannabis Corp
Performance |
| Timeline |
| General Motors |
| IM Cannabis Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and IM Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and IM Cannabis
The main advantage of trading using opposite GM and IM Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, IM 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 IM Cannabis will offset losses from the drop in IM Cannabis' long position.The idea behind General Motors and IM Cannabis Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IM Cannabis vs. Nabors Industries | IM Cannabis vs. Vantage Drilling International | IM Cannabis vs. Taylor Morn Home | IM Cannabis vs. Addus HomeCare |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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