Correlation Between Maple Leaf and Cannamerica Brands
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Cannamerica Brands 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 Maple Leaf and Cannamerica Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Green and Cannamerica Brands Corp, you can compare the effects of market volatilities on Maple Leaf and Cannamerica Brands 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 Maple Leaf with a short position of Cannamerica Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Cannamerica Brands.
Diversification Opportunities for Maple Leaf and Cannamerica Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Cannamerica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Green and Cannamerica Brands Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannamerica Brands Corp and Maple Leaf 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 Maple Leaf Green are associated (or correlated) with Cannamerica Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannamerica Brands Corp has no effect on the direction of Maple Leaf i.e., Maple Leaf and Cannamerica Brands go up and down completely randomly.
Pair Corralation between Maple Leaf and Cannamerica Brands
Assuming the 90 days horizon Maple Leaf Green is expected to generate 3.82 times more return on investment than Cannamerica Brands. However, Maple Leaf is 3.82 times more volatile than Cannamerica Brands Corp. It trades about 0.09 of its potential returns per unit of risk. Cannamerica Brands Corp is currently generating about -0.05 per unit of risk. If you would invest 2.40 in Maple Leaf Green on August 31, 2024 and sell it today you would earn a total of 0.80 from holding Maple Leaf Green or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Maple Leaf Green vs. Cannamerica Brands Corp
Performance |
| Timeline |
| Maple Leaf Green |
| Cannamerica Brands Corp |
Maple Leaf and Cannamerica Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and Cannamerica Brands
The main advantage of trading using opposite Maple Leaf and Cannamerica Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, Cannamerica Brands 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 Cannamerica Brands will offset losses from the drop in Cannamerica Brands' long position.| Maple Leaf vs. Brainsway | Maple Leaf vs. Venus Concept | Maple Leaf vs. Tactile Systems Technology | Maple Leaf vs. Icecure Medical |
| Cannamerica Brands vs. Holloman Energy Corp | Cannamerica Brands vs. cbdMD Inc | Cannamerica Brands vs. Evolus Inc | Cannamerica Brands vs. CV Sciences |
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 Stocks Directory module to find actively traded stocks across global markets.
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