Correlation Between Cannabis One and Khiron Life
Can any of the company-specific risk be diversified away by investing in both Cannabis One and Khiron Life 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 Cannabis One and Khiron Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannabis One Holdings and Khiron Life Sciences, you can compare the effects of market volatilities on Cannabis One and Khiron Life 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 Cannabis One with a short position of Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannabis One and Khiron Life.
Diversification Opportunities for Cannabis One and Khiron Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cannabis and Khiron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis One Holdings and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences and Cannabis One 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 Cannabis One Holdings are associated (or correlated) with Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of Cannabis One i.e., Cannabis One and Khiron Life go up and down completely randomly.
Pair Corralation between Cannabis One and Khiron Life
If you would invest 0.01 in Khiron Life Sciences on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Khiron Life Sciences or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 96.88% |
Values | Daily Returns |
Cannabis One Holdings vs. Khiron Life Sciences
Performance |
Timeline |
Cannabis One Holdings |
Khiron Life Sciences |
Cannabis One and Khiron Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cannabis One and Khiron Life
The main advantage of trading using opposite Cannabis One and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannabis One position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.Cannabis One vs. Cann American Corp | Cannabis One vs. Speakeasy Cannabis Club | Cannabis One vs. Benchmark Botanics | Cannabis One vs. Link Reservations |
Khiron Life vs. Cann American Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. Benchmark Botanics | Khiron Life vs. Link Reservations |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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