Correlation Between HempAmericana and Integrated Cannabis
Can any of the company-specific risk be diversified away by investing in both HempAmericana 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 HempAmericana and Integrated Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HempAmericana and Integrated Cannabis Solutions, you can compare the effects of market volatilities on HempAmericana 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 HempAmericana with a short position of Integrated Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of HempAmericana and Integrated Cannabis.
Diversification Opportunities for HempAmericana and Integrated Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HempAmericana and Integrated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HempAmericana and Integrated Cannabis Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Cannabis and HempAmericana 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 HempAmericana 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 HempAmericana i.e., HempAmericana and Integrated Cannabis go up and down completely randomly.
Pair Corralation between HempAmericana and Integrated Cannabis
Given the investment horizon of 90 days HempAmericana is expected to generate 5.16 times more return on investment than Integrated Cannabis. However, HempAmericana is 5.16 times more volatile than Integrated Cannabis Solutions. It trades about 0.07 of its potential returns per unit of risk. Integrated Cannabis Solutions is currently generating about 0.1 per unit of risk. If you would invest 0.01 in HempAmericana on November 2, 2024 and sell it today you would lose (0.01) from holding HempAmericana or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
HempAmericana vs. Integrated Cannabis Solutions
Performance |
| Timeline |
| HempAmericana |
| Integrated Cannabis |
HempAmericana and Integrated Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HempAmericana and Integrated Cannabis
The main advantage of trading using opposite HempAmericana and Integrated Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HempAmericana 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.| HempAmericana vs. Real Brands | HempAmericana vs. Mc Endvrs | HempAmericana vs. One World Pharma | HempAmericana vs. Greater Cannabis |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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