Correlation Between Pacific Ventures and Cann American
Can any of the company-specific risk be diversified away by investing in both Pacific Ventures and Cann American 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 Pacific Ventures and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Ventures Group and Cann American Corp, you can compare the effects of market volatilities on Pacific Ventures and Cann American 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 Pacific Ventures with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Ventures and Cann American.
Diversification Opportunities for Pacific Ventures and Cann American
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pacific and Cann is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Ventures Group and Cann American Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cann American Corp and Pacific Ventures 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 Pacific Ventures Group are associated (or correlated) with Cann American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cann American Corp has no effect on the direction of Pacific Ventures i.e., Pacific Ventures and Cann American go up and down completely randomly.
Pair Corralation between Pacific Ventures and Cann American
Given the investment horizon of 90 days Pacific Ventures Group is expected to generate 10.0 times more return on investment than Cann American. However, Pacific Ventures is 10.0 times more volatile than Cann American Corp. It trades about 0.18 of its potential returns per unit of risk. Cann American Corp is currently generating about 0.07 per unit of risk. If you would invest 40.00 in Pacific Ventures Group on September 4, 2024 and sell it today you would lose (39.87) from holding Pacific Ventures Group or give up 99.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.74% |
| Values | Daily Returns |
Pacific Ventures Group vs. Cann American Corp
Performance |
| Timeline |
| Pacific Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cann American Corp |
Pacific Ventures and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Ventures and Cann American
The main advantage of trading using opposite Pacific Ventures and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Ventures position performs unexpectedly, Cann American 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 Cann American will offset losses from the drop in Cann American's long position.| Pacific Ventures vs. AMCON Distributing | Pacific Ventures vs. Colabor Group | Pacific Ventures vs. Bunzl plc | Pacific Ventures vs. Wanderport Corp |
| Cann American vs. XCPCNL Business Services | Cann American vs. Golden Developing Solutions | Cann American vs. Indo Global Exchange | Cann American vs. Cgrowth Capital |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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