Correlation Between Marimed and Cannabis Sativa
Can any of the company-specific risk be diversified away by investing in both Marimed and Cannabis Sativa 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 Marimed and Cannabis Sativa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marimed and Cannabis Sativa, you can compare the effects of market volatilities on Marimed and Cannabis Sativa 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 Marimed with a short position of Cannabis Sativa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimed and Cannabis Sativa.
Diversification Opportunities for Marimed and Cannabis Sativa
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marimed and Cannabis is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Marimed and Cannabis Sativa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Sativa and Marimed 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 Marimed are associated (or correlated) with Cannabis Sativa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Sativa has no effect on the direction of Marimed i.e., Marimed and Cannabis Sativa go up and down completely randomly.
Pair Corralation between Marimed and Cannabis Sativa
Given the investment horizon of 90 days Marimed is expected to under-perform the Cannabis Sativa. But the otc stock apears to be less risky and, when comparing its historical volatility, Marimed is 3.09 times less risky than Cannabis Sativa. The otc stock trades about -0.02 of its potential returns per unit of risk. The Cannabis Sativa is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Cannabis Sativa on August 30, 2024 and sell it today you would lose (0.43) from holding Cannabis Sativa or give up 8.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marimed vs. Cannabis Sativa
Performance |
| Timeline |
| Marimed |
| Cannabis Sativa |
Marimed and Cannabis Sativa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marimed and Cannabis Sativa
The main advantage of trading using opposite Marimed and Cannabis Sativa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimed position performs unexpectedly, Cannabis Sativa 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 Cannabis Sativa will offset losses from the drop in Cannabis Sativa's long position.| Marimed vs. Green Cures Botanical | Marimed vs. Cann American Corp | Marimed vs. Rimrock Gold Corp | Marimed vs. Galexxy Holdings |
| Cannabis Sativa vs. eWellness Healthcare Corp | Cannabis Sativa vs. M3 Inc | Cannabis Sativa vs. Medical Cannabis Pay | Cannabis Sativa vs. Cloud DX |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |