Correlation Between Im Cannabis and Clever Leaves
Can any of the company-specific risk be diversified away by investing in both Im Cannabis and Clever Leaves 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 Im Cannabis and Clever Leaves into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Im Cannabis Corp and Clever Leaves Holdings, you can compare the effects of market volatilities on Im Cannabis and Clever Leaves 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 Im Cannabis with a short position of Clever Leaves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Im Cannabis and Clever Leaves.
Diversification Opportunities for Im Cannabis and Clever Leaves
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between IMCC and Clever is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Im Cannabis Corp and Clever Leaves Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clever Leaves Holdings and Im 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 Im Cannabis Corp are associated (or correlated) with Clever Leaves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clever Leaves Holdings has no effect on the direction of Im Cannabis i.e., Im Cannabis and Clever Leaves go up and down completely randomly.
Pair Corralation between Im Cannabis and Clever Leaves
Given the investment horizon of 90 days Im Cannabis Corp is expected to generate 0.27 times more return on investment than Clever Leaves. However, Im Cannabis Corp is 3.69 times less risky than Clever Leaves. It trades about 0.2 of its potential returns per unit of risk. Clever Leaves Holdings is currently generating about -0.3 per unit of risk. If you would invest 205.00 in Im Cannabis Corp on August 28, 2024 and sell it today you would earn a total of 54.00 from holding Im Cannabis Corp or generate 26.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Im Cannabis Corp vs. Clever Leaves Holdings
Performance |
| Timeline |
| Im Cannabis Corp |
| Clever Leaves Holdings |
Im Cannabis and Clever Leaves Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Im Cannabis and Clever Leaves
The main advantage of trading using opposite Im Cannabis and Clever Leaves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Im Cannabis position performs unexpectedly, Clever Leaves 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 Clever Leaves will offset losses from the drop in Clever Leaves' long position.| Im Cannabis vs. Clever Leaves Holdings | Im Cannabis vs. Khiron Life Sciences | Im Cannabis vs. Allied Corp | Im Cannabis vs. Biofrontera |
| Clever Leaves vs. Flora Growth Corp | Clever Leaves vs. AgriFORCE Growing Systems | Clever Leaves vs. Greenlane Holdings |
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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