Correlation Between Signal Advance and Marimed
Can any of the company-specific risk be diversified away by investing in both Signal Advance and Marimed 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 Signal Advance and Marimed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signal Advance and Marimed, you can compare the effects of market volatilities on Signal Advance and Marimed 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 Signal Advance with a short position of Marimed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signal Advance and Marimed.
Diversification Opportunities for Signal Advance and Marimed
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Signal and Marimed is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Signal Advance and Marimed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimed and Signal Advance 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 Signal Advance are associated (or correlated) with Marimed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimed has no effect on the direction of Signal Advance i.e., Signal Advance and Marimed go up and down completely randomly.
Pair Corralation between Signal Advance and Marimed
Given the investment horizon of 90 days Signal Advance is expected to generate 2.44 times more return on investment than Marimed. However, Signal Advance is 2.44 times more volatile than Marimed. It trades about 0.1 of its potential returns per unit of risk. Marimed is currently generating about -0.01 per unit of risk. If you would invest 7.30 in Signal Advance on October 22, 2024 and sell it today you would earn a total of 4.70 from holding Signal Advance or generate 64.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Signal Advance vs. Marimed
Performance |
| Timeline |
| Signal Advance |
| Marimed |
Signal Advance and Marimed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signal Advance and Marimed
The main advantage of trading using opposite Signal Advance and Marimed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signal Advance position performs unexpectedly, Marimed 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 Marimed will offset losses from the drop in Marimed's long position.| Signal Advance vs. Mind Technology | Signal Advance vs. Wrap Technologies | Signal Advance vs. Microvision | Signal Advance vs. Darkpulse |
| Marimed vs. Verano Holdings Corp | Marimed vs. Cresco Labs | Marimed vs. AYR Strategies Class | Marimed vs. Green Thumb Industries |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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