Correlation Between ProConcept Marketing and Cann American
Can any of the company-specific risk be diversified away by investing in both ProConcept Marketing 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 ProConcept Marketing and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProConcept Marketing Group and Cann American Corp, you can compare the effects of market volatilities on ProConcept Marketing 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 ProConcept Marketing with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProConcept Marketing and Cann American.
Diversification Opportunities for ProConcept Marketing and Cann American
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ProConcept and Cann is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ProConcept Marketing Group 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 ProConcept Marketing 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 ProConcept Marketing Group 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 ProConcept Marketing i.e., ProConcept Marketing and Cann American go up and down completely randomly.
Pair Corralation between ProConcept Marketing and Cann American
Given the investment horizon of 90 days ProConcept Marketing is expected to generate 12.07 times less return on investment than Cann American. But when comparing it to its historical volatility, ProConcept Marketing Group is 1.27 times less risky than Cann American. It trades about 0.01 of its potential returns per unit of risk. Cann American Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.20 in Cann American Corp on September 1, 2024 and sell it today you would earn a total of 0.12 from holding Cann American Corp or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProConcept Marketing Group vs. Cann American Corp
Performance |
| Timeline |
| ProConcept Marketing |
| Cann American Corp |
ProConcept Marketing and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProConcept Marketing and Cann American
The main advantage of trading using opposite ProConcept Marketing and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProConcept Marketing 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.| ProConcept Marketing vs. Cann American Corp | ProConcept Marketing vs. AAP Inc | ProConcept Marketing vs. Astra Veda | ProConcept Marketing vs. Link Reservations |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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