Correlation Between Green Cures and CBD Global
Can any of the company-specific risk be diversified away by investing in both Green Cures and CBD Global 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 CBD Global 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 CBD Global Sciences, you can compare the effects of market volatilities on Green Cures and CBD Global 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 CBD Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cures and CBD Global.
Diversification Opportunities for Green Cures and CBD Global
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Green and CBD is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Green Cures Botanical and CBD Global Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBD Global Sciences 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 CBD Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBD Global Sciences has no effect on the direction of Green Cures i.e., Green Cures and CBD Global go up and down completely randomly.
Pair Corralation between Green Cures and CBD Global
If you would invest 0.01 in Green Cures Botanical on October 30, 2024 and sell it today you would earn a total of 0.01 from holding Green Cures Botanical or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Green Cures Botanical vs. CBD Global Sciences
Performance |
| Timeline |
| Green Cures Botanical |
| CBD Global Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Green Cures and CBD Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cures and CBD Global
The main advantage of trading using opposite Green Cures and CBD Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cures position performs unexpectedly, CBD Global 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 CBD Global will offset losses from the drop in CBD Global's long position.| Green Cures vs. Cann American Corp | Green Cures vs. Rimrock Gold Corp | Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest Corp |
| CBD Global vs. Target Group | CBD Global vs. Aequus Pharmaceuticals | CBD Global vs. Filament Health Corp | CBD Global vs. Levitee Labs |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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