Correlation Between Global Hemp and Cannabis One
Can any of the company-specific risk be diversified away by investing in both Global Hemp and Cannabis One 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 Global Hemp and Cannabis One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Hemp Group and Cannabis One Holdings, you can compare the effects of market volatilities on Global Hemp and Cannabis One 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 Global Hemp with a short position of Cannabis One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Hemp and Cannabis One.
Diversification Opportunities for Global Hemp and Cannabis One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Cannabis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Hemp Group and Cannabis One Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis One Holdings and Global Hemp 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 Global Hemp Group are associated (or correlated) with Cannabis One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis One Holdings has no effect on the direction of Global Hemp i.e., Global Hemp and Cannabis One go up and down completely randomly.
Pair Corralation between Global Hemp and Cannabis One
If you would invest 7.00 in Global Hemp Group on September 6, 2024 and sell it today you would lose (5.99) from holding Global Hemp Group or give up 85.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Global Hemp Group vs. Cannabis One Holdings
Performance |
Timeline |
Global Hemp Group |
Cannabis One Holdings |
Global Hemp and Cannabis One Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Hemp and Cannabis One
The main advantage of trading using opposite Global Hemp and Cannabis One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Hemp position performs unexpectedly, Cannabis One 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 One will offset losses from the drop in Cannabis One's long position.Global Hemp vs. Greater Cannabis | Global Hemp vs. Cannabis Suisse Corp | Global Hemp vs. Maple Leaf Green | Global Hemp vs. Mc Endvrs |
Cannabis One vs. Maple Leaf Green | Cannabis One vs. Blueberries Medical Corp | Cannabis One vs. Khiron Life Sciences | Cannabis One vs. Juva Life |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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