Correlation Between Opal Balance and Cannabotech
Can any of the company-specific risk be diversified away by investing in both Opal Balance and Cannabotech 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 Opal Balance and Cannabotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opal Balance and Cannabotech, you can compare the effects of market volatilities on Opal Balance and Cannabotech 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 Opal Balance with a short position of Cannabotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opal Balance and Cannabotech.
Diversification Opportunities for Opal Balance and Cannabotech
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Opal and Cannabotech is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Opal Balance and Cannabotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabotech and Opal Balance 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 Opal Balance are associated (or correlated) with Cannabotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabotech has no effect on the direction of Opal Balance i.e., Opal Balance and Cannabotech go up and down completely randomly.
Pair Corralation between Opal Balance and Cannabotech
Assuming the 90 days trading horizon Opal Balance is expected to generate 0.35 times more return on investment than Cannabotech. However, Opal Balance is 2.86 times less risky than Cannabotech. It trades about 0.3 of its potential returns per unit of risk. Cannabotech is currently generating about -0.52 per unit of risk. If you would invest 17,295 in Opal Balance on August 29, 2024 and sell it today you would earn a total of 1,627 from holding Opal Balance or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Opal Balance vs. Cannabotech
Performance |
| Timeline |
| Opal Balance |
| Cannabotech |
Opal Balance and Cannabotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opal Balance and Cannabotech
The main advantage of trading using opposite Opal Balance and Cannabotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opal Balance position performs unexpectedly, Cannabotech 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 Cannabotech will offset losses from the drop in Cannabotech's long position.| Opal Balance vs. Nawi Brothers Group | Opal Balance vs. EN Shoham Business | Opal Balance vs. Peninsula Group | Opal Balance vs. Shikun Binui |
| Cannabotech vs. Opal Balance | Cannabotech vs. B Communications | Cannabotech vs. Holmes Place International | Cannabotech vs. Nova |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |