Correlation Between NYSE Composite and CannTrust Holdings
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and CannTrust Holdings 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 NYSE Composite and CannTrust Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and CannTrust Holdings, you can compare the effects of market volatilities on NYSE Composite and CannTrust Holdings 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 NYSE Composite with a short position of CannTrust Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and CannTrust Holdings.
Diversification Opportunities for NYSE Composite and CannTrust Holdings
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and CannTrust is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and CannTrust Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CannTrust Holdings and NYSE Composite 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 NYSE Composite are associated (or correlated) with CannTrust Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CannTrust Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and CannTrust Holdings go up and down completely randomly.
Pair Corralation between NYSE Composite and CannTrust Holdings
If you would invest 1,800,696 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 226,508 from holding NYSE Composite or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
NYSE Composite vs. CannTrust Holdings
Performance |
| Timeline |
NYSE Composite and CannTrust Holdings Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
CannTrust Holdings
Pair trading matchups for CannTrust Holdings
Pair Trading with NYSE Composite and CannTrust Holdings
The main advantage of trading using opposite NYSE Composite and CannTrust Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, CannTrust Holdings 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 CannTrust Holdings will offset losses from the drop in CannTrust Holdings' long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| CannTrust Holdings vs. Acreage Holdings | CannTrust Holdings vs. BZAM | CannTrust Holdings vs. Choom Holdings | CannTrust Holdings vs. Stem Holdings |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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