Correlation Between AdvisorShares Pure and Gan
Can any of the company-specific risk be diversified away by investing in both AdvisorShares Pure and Gan 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 AdvisorShares Pure and Gan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares Pure Cannabis and Gan, you can compare the effects of market volatilities on AdvisorShares Pure and Gan 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 AdvisorShares Pure with a short position of Gan. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares Pure and Gan.
Diversification Opportunities for AdvisorShares Pure and Gan
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AdvisorShares and Gan is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares Pure Cannabis and Gan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan and AdvisorShares Pure 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 AdvisorShares Pure Cannabis are associated (or correlated) with Gan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan has no effect on the direction of AdvisorShares Pure i.e., AdvisorShares Pure and Gan go up and down completely randomly.
Pair Corralation between AdvisorShares Pure and Gan
Given the investment horizon of 90 days AdvisorShares Pure is expected to generate 2.56 times less return on investment than Gan. But when comparing it to its historical volatility, AdvisorShares Pure Cannabis is 1.11 times less risky than Gan. It trades about 0.01 of its potential returns per unit of risk. Gan is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Gan on September 2, 2024 and sell it today you would earn a total of 43.00 from holding Gan or generate 30.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AdvisorShares Pure Cannabis vs. Gan
Performance |
| Timeline |
| AdvisorShares Pure |
| Gan |
AdvisorShares Pure and Gan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdvisorShares Pure and Gan
The main advantage of trading using opposite AdvisorShares Pure and Gan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares Pure position performs unexpectedly, Gan 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 Gan will offset losses from the drop in Gan's long position.| AdvisorShares Pure vs. AdvisorShares Pure Cannabis | AdvisorShares Pure vs. Trulieve Cannabis Corp | AdvisorShares Pure vs. Green Thumb Industries | AdvisorShares Pure vs. Amplify Seymour Cannabis |
| Gan vs. Rush Street Interactive | Gan vs. Inspired Entertainment | Gan vs. PointsBet Holdings Limited | Gan vs. PlayAGS |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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