Correlation Between Khiron Life and Cansortium
Can any of the company-specific risk be diversified away by investing in both Khiron Life and Cansortium 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 Khiron Life and Cansortium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Cansortium, you can compare the effects of market volatilities on Khiron Life and Cansortium 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 Khiron Life with a short position of Cansortium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Cansortium.
Diversification Opportunities for Khiron Life and Cansortium
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and Cansortium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Cansortium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansortium and Khiron 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 Khiron Life Sciences are associated (or correlated) with Cansortium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansortium has no effect on the direction of Khiron Life i.e., Khiron Life and Cansortium go up and down completely randomly.
Pair Corralation between Khiron Life and Cansortium
Assuming the 90 days horizon Khiron Life Sciences is expected to generate 8.98 times more return on investment than Cansortium. However, Khiron Life is 8.98 times more volatile than Cansortium. It trades about 0.05 of its potential returns per unit of risk. Cansortium is currently generating about 0.02 per unit of risk. If you would invest 8.60 in Khiron Life Sciences on November 2, 2024 and sell it today you would lose (8.60) from holding Khiron Life Sciences or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Khiron Life Sciences vs. Cansortium
Performance |
| Timeline |
| Khiron Life Sciences |
| Cansortium |
Khiron Life and Cansortium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Cansortium
The main advantage of trading using opposite Khiron Life and Cansortium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, Cansortium 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 Cansortium will offset losses from the drop in Cansortium's long position.| Khiron Life vs. Blueberries Medical Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. City View Green | Khiron Life vs. Benchmark Botanics |
| Cansortium vs. TILT Holdings | Cansortium vs. 4Front Ventures Corp | Cansortium vs. Khiron Life Sciences | Cansortium vs. BellRock Brands |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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