Correlation Between Green Cures and YourWay Cannabis
Can any of the company-specific risk be diversified away by investing in both Green Cures and YourWay Cannabis 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 YourWay Cannabis 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 YourWay Cannabis Brands, you can compare the effects of market volatilities on Green Cures and YourWay Cannabis 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 YourWay Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cures and YourWay Cannabis.
Diversification Opportunities for Green Cures and YourWay Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Green and YourWay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Cures Botanical and YourWay Cannabis Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YourWay Cannabis Brands 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 YourWay Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YourWay Cannabis Brands has no effect on the direction of Green Cures i.e., Green Cures and YourWay Cannabis go up and down completely randomly.
Pair Corralation between Green Cures and YourWay Cannabis
Given the investment horizon of 90 days Green Cures Botanical is expected to generate 0.5 times more return on investment than YourWay Cannabis. However, Green Cures Botanical is 1.99 times less risky than YourWay Cannabis. It trades about 0.16 of its potential returns per unit of risk. YourWay Cannabis Brands is currently generating about 0.07 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. YourWay Cannabis Brands
Performance |
| Timeline |
| Green Cures Botanical |
| YourWay Cannabis Brands |
Green Cures and YourWay Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cures and YourWay Cannabis
The main advantage of trading using opposite Green Cures and YourWay Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cures position performs unexpectedly, YourWay Cannabis 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 YourWay Cannabis will offset losses from the drop in YourWay Cannabis' 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 |
| YourWay Cannabis vs. Green Cures Botanical | YourWay Cannabis vs. Cann American Corp | YourWay Cannabis vs. Galexxy Holdings | YourWay Cannabis 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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