Correlation Between Genomma Lab and Decibel Cannabis
Can any of the company-specific risk be diversified away by investing in both Genomma Lab and Decibel 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 Genomma Lab and Decibel Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genomma Lab Internacional and Decibel Cannabis, you can compare the effects of market volatilities on Genomma Lab and Decibel 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 Genomma Lab with a short position of Decibel Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genomma Lab and Decibel Cannabis.
Diversification Opportunities for Genomma Lab and Decibel Cannabis
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genomma and Decibel is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Genomma Lab Internacional and Decibel Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Decibel Cannabis and Genomma Lab 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 Genomma Lab Internacional are associated (or correlated) with Decibel Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Decibel Cannabis has no effect on the direction of Genomma Lab i.e., Genomma Lab and Decibel Cannabis go up and down completely randomly.
Pair Corralation between Genomma Lab and Decibel Cannabis
Assuming the 90 days horizon Genomma Lab Internacional is expected to generate 4.6 times more return on investment than Decibel Cannabis. However, Genomma Lab is 4.6 times more volatile than Decibel Cannabis. It trades about 0.12 of its potential returns per unit of risk. Decibel Cannabis is currently generating about 0.0 per unit of risk. If you would invest 23.00 in Genomma Lab Internacional on August 29, 2024 and sell it today you would earn a total of 104.00 from holding Genomma Lab Internacional or generate 452.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.38% |
| Values | Daily Returns |
Genomma Lab Internacional vs. Decibel Cannabis
Performance |
| Timeline |
| Genomma Lab Internacional |
| Decibel Cannabis |
Genomma Lab and Decibel Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genomma Lab and Decibel Cannabis
The main advantage of trading using opposite Genomma Lab and Decibel Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genomma Lab position performs unexpectedly, Decibel 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 Decibel Cannabis will offset losses from the drop in Decibel Cannabis' long position.| Genomma Lab vs. Green Cures Botanical | Genomma Lab vs. Cann American Corp | Genomma Lab vs. Rimrock Gold Corp | Genomma Lab vs. Galexxy Holdings |
| Decibel Cannabis vs. Delta 9 Cannabis | Decibel Cannabis vs. Body and Mind | Decibel Cannabis vs. CLS Holdings USA | Decibel Cannabis vs. Halo Collective |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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