Correlation Between StateHouse Holdings and Cann American
Can any of the company-specific risk be diversified away by investing in both StateHouse Holdings 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 StateHouse Holdings and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StateHouse Holdings and Cann American Corp, you can compare the effects of market volatilities on StateHouse Holdings 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 StateHouse Holdings with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of StateHouse Holdings and Cann American.
Diversification Opportunities for StateHouse Holdings and Cann American
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between StateHouse and Cann is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding StateHouse Holdings 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 StateHouse Holdings 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 StateHouse Holdings 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 StateHouse Holdings i.e., StateHouse Holdings and Cann American go up and down completely randomly.
Pair Corralation between StateHouse Holdings and Cann American
If you would invest 1.50 in StateHouse Holdings on September 12, 2024 and sell it today you would earn a total of 0.00 from holding StateHouse Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
StateHouse Holdings vs. Cann American Corp
Performance |
| Timeline |
| StateHouse Holdings |
| Cann American Corp |
StateHouse Holdings and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StateHouse Holdings and Cann American
The main advantage of trading using opposite StateHouse Holdings and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StateHouse Holdings 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.| StateHouse Holdings vs. 4Front Ventures Corp | StateHouse Holdings vs. Khiron Life Sciences | StateHouse Holdings vs. BellRock Brands | StateHouse Holdings vs. Elixinol Global |
| Cann American vs. 4Front Ventures Corp | Cann American vs. Khiron Life Sciences | Cann American vs. BellRock Brands | Cann American vs. Elixinol Global |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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