Correlation Between Herborium and Greater Cannabis
Can any of the company-specific risk be diversified away by investing in both Herborium and Greater 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 Herborium and Greater Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Herborium Group and Greater Cannabis, you can compare the effects of market volatilities on Herborium and Greater 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 Herborium with a short position of Greater Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Herborium and Greater Cannabis.
Diversification Opportunities for Herborium and Greater Cannabis
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Herborium and Greater is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Herborium Group and Greater Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Cannabis and Herborium 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 Herborium Group are associated (or correlated) with Greater Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Cannabis has no effect on the direction of Herborium i.e., Herborium and Greater Cannabis go up and down completely randomly.
Pair Corralation between Herborium and Greater Cannabis
If you would invest 0.10 in Greater Cannabis on August 29, 2024 and sell it today you would lose (0.06) from holding Greater Cannabis or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.32% |
| Values | Daily Returns |
Herborium Group vs. Greater Cannabis
Performance |
| Timeline |
| Herborium Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greater Cannabis |
Herborium and Greater Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Herborium and Greater Cannabis
The main advantage of trading using opposite Herborium and Greater Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Herborium position performs unexpectedly, Greater 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 Greater Cannabis will offset losses from the drop in Greater Cannabis' long position.| Herborium vs. Cann American Corp | Herborium vs. GelStat Corp | Herborium vs. Green Cures Botanical | Herborium vs. Nutranomics |
| Greater Cannabis vs. Global Hemp Group | Greater Cannabis vs. Cannabis Suisse Corp | Greater Cannabis vs. Maple Leaf Green | Greater Cannabis vs. Mc Endvrs |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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