Correlation Between Green Cures and Cannabis One
Can any of the company-specific risk be diversified away by investing in both Green Cures and Cannabis One 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 Green Cures and Cannabis One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Cures Botanical and Cannabis One Holdings, you can compare the effects of market volatilities on Green Cures and Cannabis One 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 Green Cures with a short position of Cannabis One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cures and Cannabis One.
Diversification Opportunities for Green Cures and Cannabis One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Green and Cannabis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Cures Botanical and Cannabis One Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis One Holdings and Green Cures 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 Green Cures Botanical are associated (or correlated) with Cannabis One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis One Holdings has no effect on the direction of Green Cures i.e., Green Cures and Cannabis One go up and down completely randomly.
Pair Corralation between Green Cures and Cannabis One
If you would invest 0.01 in Green Cures Botanical on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Green Cures Botanical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.56% |
| Values | Daily Returns |
Green Cures Botanical vs. Cannabis One Holdings
Performance |
| Timeline |
| Green Cures Botanical |
| Cannabis One Holdings |
Green Cures and Cannabis One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cures and Cannabis One
The main advantage of trading using opposite Green Cures and Cannabis One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cures position performs unexpectedly, Cannabis One 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 Cannabis One will offset losses from the drop in Cannabis One's long position.| Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest Corp | Green Cures vs. Speakeasy Cannabis Club | Green Cures vs. Benchmark Botanics |
| Cannabis One vs. Green Cures Botanical | Cannabis One vs. Galexxy Holdings | Cannabis One vs. Indoor Harvest Corp | Cannabis One vs. Speakeasy Cannabis Club |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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