Correlation Between Integrated Cannabis and Centr Brands Corp
Can any of the company-specific risk be diversified away by investing in both Integrated Cannabis and Centr Brands Corp 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 Centr Brands Corp 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 Centr Brands Corp, you can compare the effects of market volatilities on Integrated Cannabis and Centr Brands Corp 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 Centr Brands Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Cannabis and Centr Brands Corp.
Diversification Opportunities for Integrated Cannabis and Centr Brands Corp
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Integrated and Centr is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Cannabis Solutions and Centr Brands Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centr Brands Corp 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 Centr Brands Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centr Brands Corp has no effect on the direction of Integrated Cannabis i.e., Integrated Cannabis and Centr Brands Corp go up and down completely randomly.
Pair Corralation between Integrated Cannabis and Centr Brands Corp
Given the investment horizon of 90 days Integrated Cannabis Solutions is expected to generate 0.49 times more return on investment than Centr Brands Corp. However, Integrated Cannabis Solutions is 2.02 times less risky than Centr Brands Corp. It trades about 0.12 of its potential returns per unit of risk. Centr Brands Corp is currently generating about 0.06 per unit of risk. If you would invest 0.05 in Integrated Cannabis Solutions on August 26, 2024 and sell it today you would earn a total of 0.32 from holding Integrated Cannabis Solutions or generate 640.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Cannabis Solutions vs. Centr Brands Corp
Performance |
| Timeline |
| Integrated Cannabis |
| Centr Brands Corp |
Integrated Cannabis and Centr Brands Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Cannabis and Centr Brands Corp
The main advantage of trading using opposite Integrated Cannabis and Centr Brands Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Cannabis position performs unexpectedly, Centr Brands Corp 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 Centr Brands Corp will offset losses from the drop in Centr Brands Corp'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 |
| Centr Brands Corp vs. Green Cures Botanical | Centr Brands Corp vs. Galexxy Holdings | Centr Brands Corp vs. Indoor Harvest Corp | Centr Brands Corp vs. Speakeasy Cannabis Club |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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