Correlation Between Grey Cloak and Cann American
Can any of the company-specific risk be diversified away by investing in both Grey Cloak and Cann American 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 Grey Cloak and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grey Cloak Tech and Cann American Corp, you can compare the effects of market volatilities on Grey Cloak and Cann American 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 Grey Cloak with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grey Cloak and Cann American.
Diversification Opportunities for Grey Cloak and Cann American
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grey and Cann is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Grey Cloak Tech and Cann American Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cann American Corp and Grey Cloak 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 Grey Cloak Tech are associated (or correlated) with Cann American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cann American Corp has no effect on the direction of Grey Cloak i.e., Grey Cloak and Cann American go up and down completely randomly.
Pair Corralation between Grey Cloak and Cann American
Given the investment horizon of 90 days Grey Cloak Tech is expected to generate 11.85 times more return on investment than Cann American. However, Grey Cloak is 11.85 times more volatile than Cann American Corp. It trades about 0.22 of its potential returns per unit of risk. Cann American Corp is currently generating about 0.07 per unit of risk. If you would invest 4.60 in Grey Cloak Tech on September 12, 2024 and sell it today you would earn a total of 320.40 from holding Grey Cloak Tech or generate 6965.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.69% |
| Values | Daily Returns |
Grey Cloak Tech vs. Cann American Corp
Performance |
| Timeline |
| Grey Cloak Tech |
| Cann American Corp |
Grey Cloak and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grey Cloak and Cann American
The main advantage of trading using opposite Grey Cloak and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grey Cloak position performs unexpectedly, Cann American 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 Cann American will offset losses from the drop in Cann American's long position.| Grey Cloak vs. ManifestSeven Holdings | Grey Cloak vs. Pure Harvest Cannabis | Grey Cloak vs. Ionic Brands Corp | Grey Cloak vs. CuraScientific Corp |
| Cann American vs. 4Front Ventures Corp | Cann American vs. Khiron Life Sciences | Cann American vs. BellRock Brands | Cann American 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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