Correlation Between Nissan and Cannabotech
Can any of the company-specific risk be diversified away by investing in both Nissan and Cannabotech 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 Nissan and Cannabotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nissan and Cannabotech, you can compare the effects of market volatilities on Nissan and Cannabotech 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 Nissan with a short position of Cannabotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nissan and Cannabotech.
Diversification Opportunities for Nissan and Cannabotech
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nissan and Cannabotech is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nissan and Cannabotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabotech and Nissan 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 Nissan are associated (or correlated) with Cannabotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabotech has no effect on the direction of Nissan i.e., Nissan and Cannabotech go up and down completely randomly.
Pair Corralation between Nissan and Cannabotech
Assuming the 90 days trading horizon Nissan is expected to generate 0.79 times more return on investment than Cannabotech. However, Nissan is 1.26 times less risky than Cannabotech. It trades about -0.09 of its potential returns per unit of risk. Cannabotech is currently generating about -0.55 per unit of risk. If you would invest 150,200 in Nissan on September 1, 2024 and sell it today you would lose (11,200) from holding Nissan or give up 7.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nissan vs. Cannabotech
Performance |
| Timeline |
| Nissan |
| Cannabotech |
Nissan and Cannabotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nissan and Cannabotech
The main advantage of trading using opposite Nissan and Cannabotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nissan position performs unexpectedly, Cannabotech 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 Cannabotech will offset losses from the drop in Cannabotech's long position.| Nissan vs. Bezeq Israeli Telecommunication | Nissan vs. Brainsway | Nissan vs. Mivne Real Estate | Nissan vs. Photomyne |
| Cannabotech vs. One Software Technologies | Cannabotech vs. Aura Investments | Cannabotech vs. YH Dimri Construction | Cannabotech vs. Ram On Investments and |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |