Correlation Between Green Cures and Cannamerica Brands
Can any of the company-specific risk be diversified away by investing in both Green Cures and Cannamerica Brands 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 Cannamerica Brands 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 Cannamerica Brands Corp, you can compare the effects of market volatilities on Green Cures and Cannamerica Brands 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 Cannamerica Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cures and Cannamerica Brands.
Diversification Opportunities for Green Cures and Cannamerica Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Green and Cannamerica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Cures Botanical and Cannamerica Brands Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannamerica Brands Corp 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 Cannamerica Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannamerica Brands Corp has no effect on the direction of Green Cures i.e., Green Cures and Cannamerica Brands go up and down completely randomly.
Pair Corralation between Green Cures and Cannamerica Brands
Given the investment horizon of 90 days Green Cures Botanical is expected to generate 4.02 times more return on investment than Cannamerica Brands. However, Green Cures is 4.02 times more volatile than Cannamerica Brands Corp. It trades about 0.16 of its potential returns per unit of risk. Cannamerica Brands Corp is currently generating about 0.0 per unit of risk. If you would invest 0.08 in Green Cures Botanical on September 3, 2024 and sell it today you would lose (0.06) from holding Green Cures Botanical or give up 75.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Green Cures Botanical vs. Cannamerica Brands Corp
Performance |
| Timeline |
| Green Cures Botanical |
| Cannamerica Brands Corp |
Green Cures and Cannamerica Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cures and Cannamerica Brands
The main advantage of trading using opposite Green Cures and Cannamerica Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cures position performs unexpectedly, Cannamerica Brands 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 Cannamerica Brands will offset losses from the drop in Cannamerica Brands' long position.| Green Cures vs. Cann American Corp | Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest Corp | Green Cures vs. Genomma Lab Internacional |
| Cannamerica Brands vs. Green Cures Botanical | Cannamerica Brands vs. Cann American Corp | Cannamerica Brands vs. Galexxy Holdings | Cannamerica Brands vs. Indoor Harvest Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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