Correlation Between Juva Life and Cann American
Can any of the company-specific risk be diversified away by investing in both Juva Life 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 Juva Life and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juva Life and Cann American Corp, you can compare the effects of market volatilities on Juva Life 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 Juva Life with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juva Life and Cann American.
Diversification Opportunities for Juva Life and Cann American
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Juva and Cann is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Juva Life 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 Juva Life 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 Juva Life 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 Juva Life i.e., Juva Life and Cann American go up and down completely randomly.
Pair Corralation between Juva Life and Cann American
If you would invest 0.45 in Cann American Corp on September 13, 2024 and sell it today you would lose (0.13) from holding Cann American Corp or give up 28.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Juva Life vs. Cann American Corp
Performance |
| Timeline |
| Juva Life |
| Cann American Corp |
Juva Life and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juva Life and Cann American
The main advantage of trading using opposite Juva Life and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juva Life 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.| Juva Life vs. 4Front Ventures Corp | Juva Life vs. Khiron Life Sciences | Juva Life vs. BellRock Brands | Juva Life vs. Elixinol Global |
| Cann American vs. XCPCNL Business Services | Cann American vs. Golden Developing Solutions | Cann American vs. Indo Global Exchange | Cann American vs. Cgrowth Capital |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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