Correlation Between Pure Global and Green Cures
Can any of the company-specific risk be diversified away by investing in both Pure Global and Green Cures 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 Pure Global and Green Cures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pure Global Cannabis and Green Cures Botanical, you can compare the effects of market volatilities on Pure Global and Green Cures 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 Pure Global with a short position of Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Global and Green Cures.
Diversification Opportunities for Pure Global and Green Cures
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pure and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pure Global Cannabis and Green Cures Botanical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cures Botanical and Pure Global 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 Pure Global Cannabis are associated (or correlated) with Green Cures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cures Botanical has no effect on the direction of Pure Global i.e., Pure Global and Green Cures go up and down completely randomly.
Pair Corralation between Pure Global and Green Cures
If you would invest 0.02 in Green Cures Botanical on August 28, 2024 and sell it today you would lose (0.01) from holding Green Cures Botanical or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Pure Global Cannabis vs. Green Cures Botanical
Performance |
| Timeline |
| Pure Global Cannabis |
| Green Cures Botanical |
Pure Global and Green Cures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pure Global and Green Cures
The main advantage of trading using opposite Pure Global and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pure Global position performs unexpectedly, Green Cures 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 Green Cures will offset losses from the drop in Green Cures' long position.| Pure Global vs. Aurora Cannabis | Pure Global vs. Canopy Growth Corp | Pure Global vs. Tilray Inc | Pure Global vs. Kali 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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