Correlation Between Nutra Pharma and Cann American
Can any of the company-specific risk be diversified away by investing in both Nutra Pharma and Cann American 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 Nutra Pharma and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nutra Pharma Corp and Cann American Corp, you can compare the effects of market volatilities on Nutra Pharma and Cann American 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 Nutra Pharma with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nutra Pharma and Cann American.
Diversification Opportunities for Nutra Pharma and Cann American
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nutra and Cann is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nutra Pharma Corp and Cann American Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cann American Corp and Nutra Pharma 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 Nutra Pharma Corp are associated (or correlated) with Cann American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cann American Corp has no effect on the direction of Nutra Pharma i.e., Nutra Pharma and Cann American go up and down completely randomly.
Pair Corralation between Nutra Pharma and Cann American
Given the investment horizon of 90 days Nutra Pharma Corp is expected to generate 14.09 times more return on investment than Cann American. However, Nutra Pharma is 14.09 times more volatile than Cann American Corp. It trades about 0.27 of its potential returns per unit of risk. Cann American Corp is currently generating about 0.07 per unit of risk. If you would invest 0.04 in Nutra Pharma Corp on September 2, 2024 and sell it today you would lose (0.03) from holding Nutra Pharma Corp or give up 75.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 37.22% |
| Values | Daily Returns |
Nutra Pharma Corp vs. Cann American Corp
Performance |
| Timeline |
| Nutra Pharma Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
| Cann American Corp |
Nutra Pharma and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nutra Pharma and Cann American
The main advantage of trading using opposite Nutra Pharma and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nutra Pharma position performs unexpectedly, Cann American 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 Cann American will offset losses from the drop in Cann American's long position.| Nutra Pharma vs. Cann American Corp | Nutra Pharma vs. GelStat Corp | Nutra Pharma vs. Green Cures Botanical | Nutra Pharma vs. Rimrock Gold Corp |
| Cann American vs. XCPCNL Business Services | Cann American vs. Golden Developing Solutions | Cann American vs. Indo Global Exchange | Cann American vs. Cgrowth Capital |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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