Correlation Between Ionic Brands and Cann American
Can any of the company-specific risk be diversified away by investing in both Ionic Brands 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 Ionic Brands and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ionic Brands Corp and Cann American Corp, you can compare the effects of market volatilities on Ionic Brands 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 Ionic Brands with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ionic Brands and Cann American.
Diversification Opportunities for Ionic Brands and Cann American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ionic and Cann is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ionic Brands Corp 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 Ionic Brands 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 Ionic Brands Corp 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 Ionic Brands i.e., Ionic Brands and Cann American go up and down completely randomly.
Pair Corralation between Ionic Brands and Cann American
Assuming the 90 days horizon Ionic Brands Corp is expected to generate 2.74 times more return on investment than Cann American. However, Ionic Brands is 2.74 times more volatile than Cann American Corp. It trades about 0.06 of its potential returns per unit of risk. Cann American Corp is currently generating about 0.09 per unit of risk. If you would invest 0.00 in Ionic Brands Corp on September 12, 2024 and sell it today you would earn a total of 0.01 from holding Ionic Brands Corp or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Ionic Brands Corp vs. Cann American Corp
Performance |
| Timeline |
| Ionic Brands Corp |
| Cann American Corp |
Ionic Brands and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ionic Brands and Cann American
The main advantage of trading using opposite Ionic Brands and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ionic Brands 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.| Ionic Brands vs. CuraScientific Corp | Ionic Brands vs. Earth Science Tech | Ionic Brands vs. Digital Development Partners | Ionic Brands vs. ManifestSeven Holdings |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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