Correlation Between Cannabis Strategic and GelStat Corp
Can any of the company-specific risk be diversified away by investing in both Cannabis Strategic and GelStat Corp 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 Cannabis Strategic and GelStat Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannabis Strategic Ventures and GelStat Corp, you can compare the effects of market volatilities on Cannabis Strategic and GelStat Corp 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 Cannabis Strategic with a short position of GelStat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannabis Strategic and GelStat Corp.
Diversification Opportunities for Cannabis Strategic and GelStat Corp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cannabis and GelStat is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis Strategic Ventures and GelStat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GelStat Corp and Cannabis Strategic 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 Cannabis Strategic Ventures are associated (or correlated) with GelStat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GelStat Corp has no effect on the direction of Cannabis Strategic i.e., Cannabis Strategic and GelStat Corp go up and down completely randomly.
Pair Corralation between Cannabis Strategic and GelStat Corp
Given the investment horizon of 90 days Cannabis Strategic Ventures is expected to generate 15.87 times more return on investment than GelStat Corp. However, Cannabis Strategic is 15.87 times more volatile than GelStat Corp. It trades about 0.26 of its potential returns per unit of risk. GelStat Corp is currently generating about 0.07 per unit of risk. If you would invest 0.70 in Cannabis Strategic Ventures on September 13, 2024 and sell it today you would lose (0.69) from holding Cannabis Strategic Ventures or give up 98.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cannabis Strategic Ventures vs. GelStat Corp
Performance |
| Timeline |
| Cannabis Strategic |
| GelStat Corp |
Cannabis Strategic and GelStat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannabis Strategic and GelStat Corp
The main advantage of trading using opposite Cannabis Strategic and GelStat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannabis Strategic position performs unexpectedly, GelStat Corp 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 GelStat Corp will offset losses from the drop in GelStat Corp's long position.| Cannabis Strategic vs. 4Front Ventures Corp | Cannabis Strategic vs. Khiron Life Sciences | Cannabis Strategic vs. BellRock Brands | Cannabis Strategic vs. Elixinol Global |
| GelStat Corp vs. Rimrock Gold Corp | GelStat Corp vs. Emergent Health Corp | GelStat Corp vs. Galexxy Holdings | GelStat Corp vs. Cann American Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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