Correlation Between GelStat Corp and Cannabis Strategic
Can any of the company-specific risk be diversified away by investing in both GelStat Corp and Cannabis Strategic 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 Cannabis Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GelStat Corp and Cannabis Strategic Ventures, you can compare the effects of market volatilities on GelStat Corp and Cannabis Strategic 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 Cannabis Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of GelStat Corp and Cannabis Strategic.
Diversification Opportunities for GelStat Corp and Cannabis Strategic
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between GelStat and Cannabis is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding GelStat Corp and Cannabis Strategic Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Strategic 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 Cannabis Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Strategic has no effect on the direction of GelStat Corp i.e., GelStat Corp and Cannabis Strategic go up and down completely randomly.
Pair Corralation between GelStat Corp and Cannabis Strategic
Given the investment horizon of 90 days GelStat Corp is expected to generate 59.62 times less return on investment than Cannabis Strategic. But when comparing it to its historical volatility, GelStat Corp is 15.87 times less risky than Cannabis Strategic. It trades about 0.07 of its potential returns per unit of risk. Cannabis Strategic Ventures is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 0.70 in Cannabis Strategic Ventures on September 13, 2024 and sell it today you would lose (0.69) from holding Cannabis Strategic Ventures or give up 98.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GelStat Corp vs. Cannabis Strategic Ventures
Performance |
| Timeline |
| GelStat Corp |
| Cannabis Strategic |
GelStat Corp and Cannabis Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GelStat Corp and Cannabis Strategic
The main advantage of trading using opposite GelStat Corp and Cannabis Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GelStat Corp position performs unexpectedly, Cannabis Strategic 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 Cannabis Strategic will offset losses from the drop in Cannabis Strategic's long position.| GelStat Corp vs. Rimrock Gold Corp | GelStat Corp vs. Emergent Health Corp | GelStat Corp vs. Galexxy Holdings | GelStat Corp vs. Cann American Corp |
| Cannabis Strategic vs. 4Front Ventures Corp | Cannabis Strategic vs. Khiron Life Sciences | Cannabis Strategic vs. BellRock Brands | Cannabis Strategic vs. Elixinol Global |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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