Correlation Between Trustcash Holdings and Im Cannabis
Can any of the company-specific risk be diversified away by investing in both Trustcash Holdings and Im Cannabis 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 Trustcash Holdings and Im Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trustcash Holdings and Im Cannabis Corp, you can compare the effects of market volatilities on Trustcash Holdings and Im Cannabis 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 Trustcash Holdings with a short position of Im Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trustcash Holdings and Im Cannabis.
Diversification Opportunities for Trustcash Holdings and Im Cannabis
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trustcash and IMCC is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Trustcash Holdings and Im Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Im Cannabis Corp and Trustcash 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 Trustcash Holdings are associated (or correlated) with Im Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Im Cannabis Corp has no effect on the direction of Trustcash Holdings i.e., Trustcash Holdings and Im Cannabis go up and down completely randomly.
Pair Corralation between Trustcash Holdings and Im Cannabis
Given the investment horizon of 90 days Trustcash Holdings is expected to under-perform the Im Cannabis. In addition to that, Trustcash Holdings is 3.29 times more volatile than Im Cannabis Corp. It trades about -0.22 of its total potential returns per unit of risk. Im Cannabis Corp is currently generating about 0.2 per unit of volatility. If you would invest 205.00 in Im Cannabis Corp on August 27, 2024 and sell it today you would earn a total of 54.00 from holding Im Cannabis Corp or generate 26.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trustcash Holdings vs. Im Cannabis Corp
Performance |
| Timeline |
| Trustcash Holdings |
| Im Cannabis Corp |
Trustcash Holdings and Im Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trustcash Holdings and Im Cannabis
The main advantage of trading using opposite Trustcash Holdings and Im Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trustcash Holdings position performs unexpectedly, Im Cannabis 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 Im Cannabis will offset losses from the drop in Im Cannabis' long position.| Trustcash Holdings vs. Park Electrochemical | Trustcash Holdings vs. Innovative Solutions and | Trustcash Holdings vs. Curtiss Wright | Trustcash Holdings vs. National Presto Industries |
| Im Cannabis vs. Clever Leaves Holdings | Im Cannabis vs. Khiron Life Sciences | Im Cannabis vs. Allied Corp | Im Cannabis vs. Biofrontera |
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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