Correlation Between TransCanna Holdings and Green Cures
Can any of the company-specific risk be diversified away by investing in both TransCanna Holdings 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 TransCanna Holdings and Green Cures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TransCanna Holdings and Green Cures Botanical, you can compare the effects of market volatilities on TransCanna Holdings 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 TransCanna Holdings with a short position of Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of TransCanna Holdings and Green Cures.
Diversification Opportunities for TransCanna Holdings and Green Cures
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TransCanna and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TransCanna Holdings 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 TransCanna 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 TransCanna Holdings 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 TransCanna Holdings i.e., TransCanna Holdings and Green Cures go up and down completely randomly.
Pair Corralation between TransCanna Holdings and Green Cures
Assuming the 90 days horizon TransCanna Holdings is expected to under-perform the Green Cures. But the pink sheet apears to be less risky and, when comparing its historical volatility, TransCanna Holdings is 7.99 times less risky than Green Cures. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Green Cures Botanical is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Green Cures Botanical on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Green Cures Botanical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TransCanna Holdings vs. Green Cures Botanical
Performance |
| Timeline |
| TransCanna Holdings |
| Green Cures Botanical |
TransCanna Holdings and Green Cures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TransCanna Holdings and Green Cures
The main advantage of trading using opposite TransCanna Holdings and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TransCanna Holdings 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.| TransCanna Holdings vs. Green Cures Botanical | TransCanna Holdings vs. Galexxy Holdings | TransCanna Holdings vs. Indoor Harvest Corp | TransCanna Holdings vs. Speakeasy Cannabis Club |
| Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest Corp | Green Cures vs. Speakeasy Cannabis Club | Green Cures vs. Benchmark Botanics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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