Correlation Between Integrated Cannabis and Cannabis Global
Can any of the company-specific risk be diversified away by investing in both Integrated Cannabis 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 Integrated Cannabis and Cannabis Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Cannabis Solutions and Cannabis Global, you can compare the effects of market volatilities on Integrated Cannabis 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 Integrated Cannabis with a short position of Cannabis Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Cannabis and Cannabis Global.
Diversification Opportunities for Integrated Cannabis and Cannabis Global
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Integrated and Cannabis is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Cannabis Solutions and Cannabis Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Global and Integrated Cannabis 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 Integrated Cannabis Solutions 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 Integrated Cannabis i.e., Integrated Cannabis and Cannabis Global go up and down completely randomly.
Pair Corralation between Integrated Cannabis and Cannabis Global
Given the investment horizon of 90 days Integrated Cannabis is expected to generate 26.25 times less return on investment than Cannabis Global. But when comparing it to its historical volatility, Integrated Cannabis Solutions is 13.18 times less risky than Cannabis Global. It trades about 0.1 of its potential returns per unit of risk. Cannabis Global is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Cannabis Global on November 2, 2024 and sell it today you would lose (0.06) from holding Cannabis Global or give up 85.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Integrated Cannabis Solutions vs. Cannabis Global
Performance |
| Timeline |
| Integrated Cannabis |
| Cannabis Global |
Integrated Cannabis and Cannabis Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Cannabis and Cannabis Global
The main advantage of trading using opposite Integrated Cannabis and Cannabis Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Cannabis 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.| Integrated Cannabis vs. Speakeasy Cannabis Club | Integrated Cannabis vs. City View Green | Integrated Cannabis vs. Benchmark Botanics | Integrated Cannabis vs. Ravenquest Biomed |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |