Correlation Between NexGel Warrant and Im Cannabis
Can any of the company-specific risk be diversified away by investing in both NexGel Warrant and Im Cannabis 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 NexGel Warrant and Im Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NexGel Warrant and Im Cannabis Corp, you can compare the effects of market volatilities on NexGel Warrant and Im Cannabis 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 NexGel Warrant with a short position of Im Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of NexGel Warrant and Im Cannabis.
Diversification Opportunities for NexGel Warrant and Im Cannabis
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between NexGel and IMCC is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding NexGel Warrant and Im Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Im Cannabis Corp and NexGel Warrant 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 NexGel Warrant are associated (or correlated) with Im Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Im Cannabis Corp has no effect on the direction of NexGel Warrant i.e., NexGel Warrant and Im Cannabis go up and down completely randomly.
Pair Corralation between NexGel Warrant and Im Cannabis
Assuming the 90 days horizon NexGel Warrant is expected to under-perform the Im Cannabis. But the stock apears to be less risky and, when comparing its historical volatility, NexGel Warrant is 1.14 times less risky than Im Cannabis. The stock trades about -0.01 of its potential returns per unit of risk. The Im Cannabis Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Im Cannabis Corp on August 31, 2024 and sell it today you would earn a total of 153.00 from holding Im Cannabis Corp or generate 70.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NexGel Warrant vs. Im Cannabis Corp
Performance |
| Timeline |
| NexGel Warrant |
| Im Cannabis Corp |
NexGel Warrant and Im Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NexGel Warrant and Im Cannabis
The main advantage of trading using opposite NexGel Warrant and Im Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NexGel Warrant position performs unexpectedly, Im Cannabis 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 Im Cannabis will offset losses from the drop in Im Cannabis' long position.| NexGel Warrant vs. Nexgel Inc | NexGel Warrant vs. NLS Pharmaceutics AG | NexGel Warrant vs. NeuroSense Therapeutics Ltd | NexGel Warrant vs. Pasithea Therapeutics Corp |
| Im Cannabis vs. Clever Leaves Holdings | Im Cannabis vs. Khiron Life Sciences | Im Cannabis vs. Allied Corp | Im Cannabis vs. Biofrontera |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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