Correlation Between OneLife Technologies and Medical Cannabis
Can any of the company-specific risk be diversified away by investing in both OneLife Technologies and Medical 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 OneLife Technologies and Medical Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneLife Technologies Corp and Medical Cannabis Pay, you can compare the effects of market volatilities on OneLife Technologies and Medical 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 OneLife Technologies with a short position of Medical Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneLife Technologies and Medical Cannabis.
Diversification Opportunities for OneLife Technologies and Medical Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OneLife and Medical is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OneLife Technologies Corp and Medical Cannabis Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Cannabis Pay and OneLife Technologies 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 OneLife Technologies Corp are associated (or correlated) with Medical Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Cannabis Pay has no effect on the direction of OneLife Technologies i.e., OneLife Technologies and Medical Cannabis go up and down completely randomly.
Pair Corralation between OneLife Technologies and Medical Cannabis
Given the investment horizon of 90 days OneLife Technologies Corp is expected to under-perform the Medical Cannabis. But the stock apears to be less risky and, when comparing its historical volatility, OneLife Technologies Corp is 39.85 times less risky than Medical Cannabis. The stock trades about -0.04 of its potential returns per unit of risk. The Medical Cannabis Pay is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 0.22 in Medical Cannabis Pay on September 3, 2024 and sell it today you would lose (0.21) from holding Medical Cannabis Pay or give up 95.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
OneLife Technologies Corp vs. Medical Cannabis Pay
Performance |
| Timeline |
| OneLife Technologies Corp |
| Medical Cannabis Pay |
OneLife Technologies and Medical Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneLife Technologies and Medical Cannabis
The main advantage of trading using opposite OneLife Technologies and Medical Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneLife Technologies position performs unexpectedly, Medical 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 Medical Cannabis will offset losses from the drop in Medical Cannabis' long position.| OneLife Technologies vs. Certara | OneLife Technologies vs. HealthStream | OneLife Technologies vs. National Research Corp |
| Medical Cannabis vs. Nouveau Life Pharmaceuticals | Medical Cannabis vs. PPJ Healthcare Enterprises | Medical Cannabis vs. eWellness Healthcare Corp | Medical Cannabis vs. M3 Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |