Correlation Between Curative Biosciences and North American

Can any of the company-specific risk be diversified away by investing in both Curative Biosciences and North 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 Curative Biosciences and North American into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Curative Biosciences and North American Cannabis, you can compare the effects of market volatilities on Curative Biosciences and North 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 Curative Biosciences with a short position of North American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curative Biosciences and North American.

Diversification Opportunities for Curative Biosciences and North American

0.0

Correlation Coefficient

Curative Biosciences  North American

Pay attention - limited upside

The 3 months correlation between Curative and North is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Curative Biosciences and North American Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North American Cannabis and Curative Biosciences 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 Curative Biosciences are associated (or correlated) with North American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North American Cannabis has no effect on the direction of Curative Biosciences i.e., Curative Biosciences and North American go up and down completely randomly.

Pair Corralation between Curative Biosciences and North American

If you would invest  0.00  in North American Cannabis on September 2, 2024 and sell it today you would earn a total of  0.00  from holding North American Cannabis or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Curative Biosciences  vs.  North American Cannabis

Curative Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Curative Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Curative Biosciences is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

North American Cannabis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days North American Cannabis has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady primary indicators, North American is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Curative Biosciences and North American

The main advantage of trading using opposite Curative Biosciences and North American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curative Biosciences position performs unexpectedly, North 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 North American will offset losses from the drop in North American's long position.

The idea behind Curative Biosciences and North American Cannabis 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.