Correlation Between Im Cannabis and GelStat Corp
Can any of the company-specific risk be diversified away by investing in both Im Cannabis and GelStat 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 Im Cannabis and GelStat Corp 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 GelStat Corp, you can compare the effects of market volatilities on Im Cannabis and GelStat 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 Im Cannabis with a short position of GelStat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Im Cannabis and GelStat Corp.
Diversification Opportunities for Im Cannabis and GelStat Corp
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between IMCC and GelStat is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Im Cannabis Corp and GelStat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GelStat Corp 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 GelStat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GelStat Corp has no effect on the direction of Im Cannabis i.e., Im Cannabis and GelStat Corp go up and down completely randomly.
Pair Corralation between Im Cannabis and GelStat Corp
Given the investment horizon of 90 days Im Cannabis is expected to generate 4.71 times less return on investment than GelStat Corp. But when comparing it to its historical volatility, Im Cannabis Corp is 3.45 times less risky than GelStat Corp. It trades about 0.09 of its potential returns per unit of risk. GelStat Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.03 in GelStat Corp on August 27, 2024 and sell it today you would earn a total of 0.01 from holding GelStat Corp or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Im Cannabis Corp vs. GelStat Corp
Performance |
| Timeline |
| Im Cannabis Corp |
| GelStat Corp |
Im Cannabis and GelStat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Im Cannabis and GelStat Corp
The main advantage of trading using opposite Im Cannabis and GelStat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Im Cannabis position performs unexpectedly, GelStat 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 GelStat Corp will offset losses from the drop in GelStat Corp's long position.| Im Cannabis vs. Clever Leaves Holdings | Im Cannabis vs. Khiron Life Sciences | Im Cannabis vs. Allied Corp | Im Cannabis vs. Biofrontera |
| GelStat Corp vs. Rezolute | GelStat Corp vs. Tempest Therapeutics | GelStat Corp vs. Forte Biosciences | GelStat Corp vs. Dyadic International |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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