Correlation Between YourWay Cannabis and Harfang Exploration
Can any of the company-specific risk be diversified away by investing in both YourWay Cannabis and Harfang Exploration 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 YourWay Cannabis and Harfang Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YourWay Cannabis Brands and Harfang Exploration, you can compare the effects of market volatilities on YourWay Cannabis and Harfang Exploration 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 YourWay Cannabis with a short position of Harfang Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of YourWay Cannabis and Harfang Exploration.
Diversification Opportunities for YourWay Cannabis and Harfang Exploration
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YourWay and Harfang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YourWay Cannabis Brands and Harfang Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harfang Exploration and YourWay Cannabis 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 YourWay Cannabis Brands are associated (or correlated) with Harfang Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harfang Exploration has no effect on the direction of YourWay Cannabis i.e., YourWay Cannabis and Harfang Exploration go up and down completely randomly.
Pair Corralation between YourWay Cannabis and Harfang Exploration
Assuming the 90 days horizon YourWay Cannabis Brands is expected to generate 12.0 times more return on investment than Harfang Exploration. However, YourWay Cannabis is 12.0 times more volatile than Harfang Exploration. It trades about 0.07 of its potential returns per unit of risk. Harfang Exploration is currently generating about -0.01 per unit of risk. If you would invest 2.70 in YourWay Cannabis Brands on September 1, 2024 and sell it today you would lose (2.70) from holding YourWay Cannabis Brands or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.56% |
| Values | Daily Returns |
YourWay Cannabis Brands vs. Harfang Exploration
Performance |
| Timeline |
| YourWay Cannabis Brands |
| Harfang Exploration |
YourWay Cannabis and Harfang Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YourWay Cannabis and Harfang Exploration
The main advantage of trading using opposite YourWay Cannabis and Harfang Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YourWay Cannabis position performs unexpectedly, Harfang Exploration 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 Harfang Exploration will offset losses from the drop in Harfang Exploration's long position.| YourWay Cannabis vs. Holloman Energy Corp | YourWay Cannabis vs. cbdMD Inc | YourWay Cannabis vs. Evolus Inc | YourWay Cannabis vs. CV Sciences |
| Harfang Exploration vs. Champion Bear Resources | Harfang Exploration vs. Edison Cobalt Corp | Harfang Exploration vs. Aurelia Metals Limited | Harfang Exploration vs. Fury Gold Mines |
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 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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