Correlation Between Green Cures and Nexien Biopharma
Can any of the company-specific risk be diversified away by investing in both Green Cures and Nexien Biopharma 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 Nexien Biopharma 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 Nexien Biopharma, you can compare the effects of market volatilities on Green Cures and Nexien Biopharma 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 Nexien Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cures and Nexien Biopharma.
Diversification Opportunities for Green Cures and Nexien Biopharma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Green and Nexien is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Cures Botanical and Nexien Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexien Biopharma 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 Nexien Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexien Biopharma has no effect on the direction of Green Cures i.e., Green Cures and Nexien Biopharma go up and down completely randomly.
Pair Corralation between Green Cures and Nexien Biopharma
Given the investment horizon of 90 days Green Cures Botanical is expected to generate 1.94 times more return on investment than Nexien Biopharma. However, Green Cures is 1.94 times more volatile than Nexien Biopharma. It trades about 0.28 of its potential returns per unit of risk. Nexien Biopharma is currently generating about -0.06 per unit of risk. If you would invest 0.01 in Green Cures Botanical on September 3, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Cures Botanical vs. Nexien Biopharma
Performance |
| Timeline |
| Green Cures Botanical |
| Nexien Biopharma |
Green Cures and Nexien Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cures and Nexien Biopharma
The main advantage of trading using opposite Green Cures and Nexien Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cures position performs unexpectedly, Nexien Biopharma 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 Nexien Biopharma will offset losses from the drop in Nexien Biopharma's long position.| Green Cures vs. Cann American Corp | Green Cures vs. Indoor Harvest Corp | Green Cures vs. Genomma Lab Internacional | Green Cures vs. Speakeasy Cannabis Club |
| Nexien Biopharma vs. Green Cures Botanical | Nexien Biopharma vs. Cann American Corp | Nexien Biopharma vs. Indoor Harvest Corp | Nexien Biopharma vs. Genomma Lab Internacional |
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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