Correlation Between Kiaro Holdings and Nova Cannabis
Can any of the company-specific risk be diversified away by investing in both Kiaro Holdings and Nova Cannabis 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 Kiaro Holdings and Nova Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiaro Holdings Corp and Nova Cannabis, you can compare the effects of market volatilities on Kiaro Holdings and Nova Cannabis 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 Kiaro Holdings with a short position of Nova Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiaro Holdings and Nova Cannabis.
Diversification Opportunities for Kiaro Holdings and Nova Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kiaro and Nova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kiaro Holdings Corp and Nova Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Cannabis and Kiaro Holdings 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 Kiaro Holdings Corp are associated (or correlated) with Nova Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Cannabis has no effect on the direction of Kiaro Holdings i.e., Kiaro Holdings and Nova Cannabis go up and down completely randomly.
Pair Corralation between Kiaro Holdings and Nova Cannabis
Assuming the 90 days horizon Kiaro Holdings Corp is expected to under-perform the Nova Cannabis. But the pink sheet apears to be less risky and, when comparing its historical volatility, Kiaro Holdings Corp is 6.42 times less risky than Nova Cannabis. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Nova Cannabis is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 73.00 in Nova Cannabis on August 31, 2024 and sell it today you would earn a total of 53.00 from holding Nova Cannabis or generate 72.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.55% |
| Values | Daily Returns |
Kiaro Holdings Corp vs. Nova Cannabis
Performance |
| Timeline |
| Kiaro Holdings Corp |
| Nova Cannabis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kiaro Holdings and Nova Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiaro Holdings and Nova Cannabis
The main advantage of trading using opposite Kiaro Holdings and Nova Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiaro Holdings position performs unexpectedly, Nova Cannabis 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 Nova Cannabis will offset losses from the drop in Nova Cannabis' long position.| Kiaro Holdings vs. Leafly Holdings | Kiaro Holdings vs. Leafly Holdings | Kiaro Holdings vs. SunLink Health Systems |
| Nova Cannabis vs. Leafly Holdings | Nova Cannabis vs. Leafly Holdings | Nova Cannabis vs. SunLink Health Systems | Nova Cannabis vs. Kiaro Holdings Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |