Correlation Between GelStat Corp and Integrated Cannabis
Can any of the company-specific risk be diversified away by investing in both GelStat Corp and Integrated 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 GelStat Corp and Integrated Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GelStat Corp and Integrated Cannabis Solutions, you can compare the effects of market volatilities on GelStat Corp and Integrated 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 GelStat Corp with a short position of Integrated Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of GelStat Corp and Integrated Cannabis.
Diversification Opportunities for GelStat Corp and Integrated Cannabis
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GelStat and Integrated is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding GelStat Corp and Integrated Cannabis Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Cannabis and GelStat Corp 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 GelStat Corp are associated (or correlated) with Integrated Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Cannabis has no effect on the direction of GelStat Corp i.e., GelStat Corp and Integrated Cannabis go up and down completely randomly.
Pair Corralation between GelStat Corp and Integrated Cannabis
Given the investment horizon of 90 days GelStat Corp is expected to generate 2.11 times more return on investment than Integrated Cannabis. However, GelStat Corp is 2.11 times more volatile than Integrated Cannabis Solutions. It trades about 0.16 of its potential returns per unit of risk. Integrated Cannabis Solutions is currently generating about -0.19 per unit of risk. If you would invest 0.03 in GelStat Corp on August 25, 2024 and sell it today you would earn a total of 0.01 from holding GelStat Corp or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GelStat Corp vs. Integrated Cannabis Solutions
Performance |
| Timeline |
| GelStat Corp |
| Integrated Cannabis |
GelStat Corp and Integrated Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GelStat Corp and Integrated Cannabis
The main advantage of trading using opposite GelStat Corp and Integrated Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GelStat Corp position performs unexpectedly, Integrated 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 Integrated Cannabis will offset losses from the drop in Integrated Cannabis' long position.| GelStat Corp vs. Rezolute | GelStat Corp vs. Tempest Therapeutics | GelStat Corp vs. Forte Biosciences | GelStat Corp vs. Dyadic International |
| Integrated Cannabis vs. Speakeasy Cannabis Club | Integrated Cannabis vs. City View Green | Integrated Cannabis vs. Benchmark Botanics | Integrated Cannabis vs. Ravenquest Biomed |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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