Correlation Between North American and Cannabis Global
Can any of the company-specific risk be diversified away by investing in both North American and Cannabis Global 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 North American and Cannabis Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North American Cannabis and Cannabis Global, you can compare the effects of market volatilities on North American and Cannabis Global 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 North American with a short position of Cannabis Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of North American and Cannabis Global.
Diversification Opportunities for North American and Cannabis Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between North and Cannabis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding North American Cannabis and Cannabis Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Global and North American 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 North American Cannabis are associated (or correlated) with Cannabis Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Global has no effect on the direction of North American i.e., North American and Cannabis Global go up and down completely randomly.
Pair Corralation between North American and Cannabis Global
Given the investment horizon of 90 days North American Cannabis is expected to generate 1.27 times more return on investment than Cannabis Global. However, North American is 1.27 times more volatile than Cannabis Global. It trades about 0.25 of its potential returns per unit of risk. Cannabis Global is currently generating about 0.19 per unit of risk. If you would invest 0.01 in North American Cannabis on August 29, 2024 and sell it today you would lose (0.01) from holding North American Cannabis or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
North American Cannabis vs. Cannabis Global
Performance |
| Timeline |
| North American Cannabis |
| Cannabis Global |
North American and Cannabis Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North American and Cannabis Global
The main advantage of trading using opposite North American and Cannabis Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North American position performs unexpectedly, Cannabis Global 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 Cannabis Global will offset losses from the drop in Cannabis Global's long position.| North American vs. Cbd Life Sciences | North American vs. FutureWorld Corp | North American vs. Now Corp | North American vs. For The Earth |
| Cannabis Global vs. Green Cures Botanical | Cannabis Global vs. Cann American Corp | Cannabis Global vs. Rimrock Gold Corp | Cannabis Global vs. Galexxy 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |