Correlation Between Green Cures and Indoor Harvest
Can any of the company-specific risk be diversified away by investing in both Green Cures and Indoor Harvest 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 Indoor Harvest 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 Indoor Harvest Corp, you can compare the effects of market volatilities on Green Cures and Indoor Harvest 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 Indoor Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cures and Indoor Harvest.
Diversification Opportunities for Green Cures and Indoor Harvest
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Green and Indoor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Cures Botanical and Indoor Harvest Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indoor Harvest 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 Indoor Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indoor Harvest Corp has no effect on the direction of Green Cures i.e., Green Cures and Indoor Harvest go up and down completely randomly.
Pair Corralation between Green Cures and Indoor Harvest
Given the investment horizon of 90 days Green Cures Botanical is expected to generate 3.95 times more return on investment than Indoor Harvest. However, Green Cures is 3.95 times more volatile than Indoor Harvest Corp. It trades about 0.16 of its potential returns per unit of risk. Indoor Harvest Corp is currently generating about -0.01 per unit of risk. If you would invest 0.06 in Green Cures Botanical on October 30, 2024 and sell it today you would lose (0.05) from holding Green Cures Botanical or give up 83.33% 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. Indoor Harvest Corp
Performance |
| Timeline |
| Green Cures Botanical |
| Indoor Harvest Corp |
Green Cures and Indoor Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cures and Indoor Harvest
The main advantage of trading using opposite Green Cures and Indoor Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cures position performs unexpectedly, Indoor Harvest 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 Indoor Harvest will offset losses from the drop in Indoor Harvest'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 |
| Indoor Harvest vs. Green Cures Botanical | Indoor Harvest vs. Cann American Corp | Indoor Harvest vs. Rimrock Gold Corp | Indoor Harvest vs. Galexxy Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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