Correlation Between HLS Therapeutics and Cannabis Global
Can any of the company-specific risk be diversified away by investing in both HLS Therapeutics and Cannabis Global 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 HLS Therapeutics and Cannabis Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HLS Therapeutics and Cannabis Global, you can compare the effects of market volatilities on HLS Therapeutics and Cannabis Global 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 HLS Therapeutics with a short position of Cannabis Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HLS Therapeutics and Cannabis Global.
Diversification Opportunities for HLS Therapeutics and Cannabis Global
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HLS and Cannabis is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding HLS Therapeutics and Cannabis Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Global and HLS Therapeutics 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 HLS Therapeutics are associated (or correlated) with Cannabis Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Global has no effect on the direction of HLS Therapeutics i.e., HLS Therapeutics and Cannabis Global go up and down completely randomly.
Pair Corralation between HLS Therapeutics and Cannabis Global
Assuming the 90 days horizon HLS Therapeutics is expected to generate 17.51 times less return on investment than Cannabis Global. But when comparing it to its historical volatility, HLS Therapeutics is 12.62 times less risky than Cannabis Global. It trades about 0.07 of its potential returns per unit of risk. Cannabis Global is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Cannabis Global on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Cannabis Global or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
HLS Therapeutics vs. Cannabis Global
Performance |
| Timeline |
| HLS Therapeutics |
| Cannabis Global |
HLS Therapeutics and Cannabis Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HLS Therapeutics and Cannabis Global
The main advantage of trading using opposite HLS Therapeutics and Cannabis Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HLS Therapeutics position performs unexpectedly, Cannabis Global 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 Global will offset losses from the drop in Cannabis Global's long position.| HLS Therapeutics vs. Aion Therapeutic | HLS Therapeutics vs. Cannara Biotech | HLS Therapeutics vs. Knight Therapeutics | HLS Therapeutics vs. Canntab Therapeutics Limited |
| Cannabis Global vs. Cann American Corp | Cannabis Global vs. GelStat Corp | Cannabis Global vs. Green Cures Botanical | Cannabis Global vs. Greater Cannabis |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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