Correlation Between Red Light and CannTrust Holdings
Can any of the company-specific risk be diversified away by investing in both Red Light and CannTrust Holdings 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 Red Light and CannTrust Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Light Holland and CannTrust Holdings, you can compare the effects of market volatilities on Red Light and CannTrust Holdings 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 Red Light with a short position of CannTrust Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Light and CannTrust Holdings.
Diversification Opportunities for Red Light and CannTrust Holdings
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Red and CannTrust is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Red Light Holland and CannTrust Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CannTrust Holdings and Red Light 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 Red Light Holland are associated (or correlated) with CannTrust Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CannTrust Holdings has no effect on the direction of Red Light i.e., Red Light and CannTrust Holdings go up and down completely randomly.
Pair Corralation between Red Light and CannTrust Holdings
If you would invest 2.60 in Red Light Holland on August 29, 2024 and sell it today you would earn a total of 0.58 from holding Red Light Holland or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Red Light Holland vs. CannTrust Holdings
Performance |
| Timeline |
| Red Light Holland |
| CannTrust Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Red Light and CannTrust Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Light and CannTrust Holdings
The main advantage of trading using opposite Red Light and CannTrust Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Light position performs unexpectedly, CannTrust Holdings 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 CannTrust Holdings will offset losses from the drop in CannTrust Holdings' long position.| Red Light vs. Grey Cloak Tech | Red Light vs. Lobe Sciences | Red Light vs. Mydecine Innovations Group | Red Light vs. Charlottes Web Holdings |
| CannTrust Holdings vs. Acreage Holdings | CannTrust Holdings vs. BZAM | CannTrust Holdings vs. Choom Holdings | CannTrust Holdings vs. Stem Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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