Correlation Between Medical Marijuana and Rimrock Gold
Can any of the company-specific risk be diversified away by investing in both Medical Marijuana and Rimrock Gold 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 Medical Marijuana and Rimrock Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Marijuana I and Rimrock Gold Corp, you can compare the effects of market volatilities on Medical Marijuana and Rimrock Gold 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 Medical Marijuana with a short position of Rimrock Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Marijuana and Rimrock Gold.
Diversification Opportunities for Medical Marijuana and Rimrock Gold
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Medical and Rimrock is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Medical Marijuana I and Rimrock Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimrock Gold Corp and Medical Marijuana 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 Medical Marijuana I are associated (or correlated) with Rimrock Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimrock Gold Corp has no effect on the direction of Medical Marijuana i.e., Medical Marijuana and Rimrock Gold go up and down completely randomly.
Pair Corralation between Medical Marijuana and Rimrock Gold
Given the investment horizon of 90 days Medical Marijuana I is expected to under-perform the Rimrock Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Medical Marijuana I is 1.33 times less risky than Rimrock Gold. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Rimrock Gold Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.03 in Rimrock Gold Corp on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Rimrock Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Medical Marijuana I vs. Rimrock Gold Corp
Performance |
| Timeline |
| Medical Marijuana |
| Rimrock Gold Corp |
Medical Marijuana and Rimrock Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Marijuana and Rimrock Gold
The main advantage of trading using opposite Medical Marijuana and Rimrock Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Marijuana position performs unexpectedly, Rimrock Gold 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 Rimrock Gold will offset losses from the drop in Rimrock Gold's long position.| Medical Marijuana vs. Rezolute | Medical Marijuana vs. Tempest Therapeutics | Medical Marijuana vs. Forte Biosciences | Medical Marijuana vs. Dyadic International |
| Rimrock Gold vs. Green Cures Botanical | Rimrock Gold vs. Galexxy Holdings | Rimrock Gold vs. Indoor Harvest Corp | Rimrock Gold vs. Speakeasy Cannabis Club |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |