Correlation Between Cannara Biotech and Aleafia Health
Can any of the company-specific risk be diversified away by investing in both Cannara Biotech and Aleafia Health 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 Cannara Biotech and Aleafia Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannara Biotech and Aleafia Health, you can compare the effects of market volatilities on Cannara Biotech and Aleafia Health 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 Cannara Biotech with a short position of Aleafia Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannara Biotech and Aleafia Health.
Diversification Opportunities for Cannara Biotech and Aleafia Health
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cannara and Aleafia is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cannara Biotech and Aleafia Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aleafia Health and Cannara Biotech 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 Cannara Biotech are associated (or correlated) with Aleafia Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aleafia Health has no effect on the direction of Cannara Biotech i.e., Cannara Biotech and Aleafia Health go up and down completely randomly.
Pair Corralation between Cannara Biotech and Aleafia Health
If you would invest 51.00 in Cannara Biotech on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Cannara Biotech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cannara Biotech vs. Aleafia Health
Performance |
| Timeline |
| Cannara Biotech |
| Aleafia Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cannara Biotech and Aleafia Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannara Biotech and Aleafia Health
The main advantage of trading using opposite Cannara Biotech and Aleafia Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannara Biotech position performs unexpectedly, Aleafia Health 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 Aleafia Health will offset losses from the drop in Aleafia Health's long position.| Cannara Biotech vs. Holloman Energy Corp | Cannara Biotech vs. cbdMD Inc | Cannara Biotech vs. Evolus Inc | Cannara Biotech vs. CV Sciences |
| Aleafia Health vs. Acreage Holdings | Aleafia Health vs. Verano Holdings Corp | Aleafia Health vs. Pharmagreen Biotech | Aleafia Health vs. Mydecine Innovations Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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