Correlation Between XCPCNL Business and Cann American

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Can any of the company-specific risk be diversified away by investing in both XCPCNL Business 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 XCPCNL Business and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XCPCNL Business Services and Cann American Corp, you can compare the effects of market volatilities on XCPCNL Business 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 XCPCNL Business with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of XCPCNL Business and Cann American.

Diversification Opportunities for XCPCNL Business and Cann American

XCPCNLCannDiversified AwayXCPCNLCannDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between XCPCNL and Cann is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XCPCNL Business Services 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 XCPCNL Business 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 XCPCNL Business Services 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 XCPCNL Business i.e., XCPCNL Business and Cann American go up and down completely randomly.

Pair Corralation between XCPCNL Business and Cann American

If you would invest  0.38  in Cann American Corp on November 14, 2024 and sell it today you would earn a total of  0.07  from holding Cann American Corp or generate 18.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.16%
ValuesDaily Returns

XCPCNL Business Services  vs.  Cann American Corp

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -60-50-40-30-20-10
JavaScript chart by amCharts 3.21.15XCPL CNNA
       Timeline  
XCPCNL Business Services 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days XCPCNL Business Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, XCPCNL Business is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.00010.0001050.000110.000115
Cann American Corp 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cann American Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Cann American sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.00050.0010.00150.0020.00250.0030.00350.0040.0045

XCPCNL Business and Cann American Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.00020.00040.00060.0008
JavaScript chart by amCharts 3.21.15XCPL CNNA
       Returns  

Pair Trading with XCPCNL Business and Cann American

The main advantage of trading using opposite XCPCNL Business and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XCPCNL Business 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.
The idea behind XCPCNL Business Services and Cann American Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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