Correlation Between Speakeasy Cannabis and Creative Edge
Can any of the company-specific risk be diversified away by investing in both Speakeasy Cannabis and Creative Edge 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 Speakeasy Cannabis and Creative Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Speakeasy Cannabis Club and Creative Edge Nutrit, you can compare the effects of market volatilities on Speakeasy Cannabis and Creative Edge 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 Speakeasy Cannabis with a short position of Creative Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Speakeasy Cannabis and Creative Edge.
Diversification Opportunities for Speakeasy Cannabis and Creative Edge
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Speakeasy and Creative is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Speakeasy Cannabis Club and Creative Edge Nutrit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Edge Nutrit and Speakeasy Cannabis 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 Speakeasy Cannabis Club are associated (or correlated) with Creative Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Edge Nutrit has no effect on the direction of Speakeasy Cannabis i.e., Speakeasy Cannabis and Creative Edge go up and down completely randomly.
Pair Corralation between Speakeasy Cannabis and Creative Edge
Assuming the 90 days horizon Speakeasy Cannabis Club is expected to under-perform the Creative Edge. In addition to that, Speakeasy Cannabis is 1.41 times more volatile than Creative Edge Nutrit. It trades about -0.06 of its total potential returns per unit of risk. Creative Edge Nutrit is currently generating about -0.04 per unit of volatility. If you would invest 0.01 in Creative Edge Nutrit on August 30, 2024 and sell it today you would lose (0.01) from holding Creative Edge Nutrit or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Speakeasy Cannabis Club vs. Creative Edge Nutrit
Performance |
| Timeline |
| Speakeasy Cannabis Club |
| Creative Edge Nutrit |
Speakeasy Cannabis and Creative Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Speakeasy Cannabis and Creative Edge
The main advantage of trading using opposite Speakeasy Cannabis and Creative Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Speakeasy Cannabis position performs unexpectedly, Creative Edge 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 Creative Edge will offset losses from the drop in Creative Edge's long position.| Speakeasy Cannabis vs. Green Cures Botanical | Speakeasy Cannabis vs. Cann American Corp | Speakeasy Cannabis vs. Rimrock Gold Corp | Speakeasy Cannabis vs. Galexxy Holdings |
| Creative Edge vs. Benchmark Botanics | Creative Edge vs. Speakeasy Cannabis Club | Creative Edge vs. City View Green | Creative Edge vs. BC Craft Supply |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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