Correlation Between Grown Rogue and Cansortium
Can any of the company-specific risk be diversified away by investing in both Grown Rogue and Cansortium 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 Grown Rogue and Cansortium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grown Rogue International and Cansortium, you can compare the effects of market volatilities on Grown Rogue and Cansortium 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 Grown Rogue with a short position of Cansortium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grown Rogue and Cansortium.
Diversification Opportunities for Grown Rogue and Cansortium
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grown and Cansortium is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Grown Rogue International and Cansortium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansortium and Grown Rogue 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 Grown Rogue International are associated (or correlated) with Cansortium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansortium has no effect on the direction of Grown Rogue i.e., Grown Rogue and Cansortium go up and down completely randomly.
Pair Corralation between Grown Rogue and Cansortium
Assuming the 90 days horizon Grown Rogue International is expected to under-perform the Cansortium. But the otc stock apears to be less risky and, when comparing its historical volatility, Grown Rogue International is 2.24 times less risky than Cansortium. The otc stock trades about -0.24 of its potential returns per unit of risk. The Cansortium is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7.10 in Cansortium on October 21, 2024 and sell it today you would earn a total of 0.60 from holding Cansortium or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Grown Rogue International vs. Cansortium
Performance |
| Timeline |
| Grown Rogue International |
| Cansortium |
Grown Rogue and Cansortium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grown Rogue and Cansortium
The main advantage of trading using opposite Grown Rogue and Cansortium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grown Rogue position performs unexpectedly, Cansortium 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 Cansortium will offset losses from the drop in Cansortium's long position.| Grown Rogue vs. Goodness Growth Holdings | Grown Rogue vs. C21 Investments | Grown Rogue vs. Delta 9 Cannabis | Grown Rogue vs. 4Front Ventures Corp |
| Cansortium vs. TILT Holdings | Cansortium vs. 4Front Ventures Corp | Cansortium vs. Khiron Life Sciences | Cansortium vs. BellRock Brands |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |