Correlation Between Greater Cannabis and Juva Life

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

Diversification Opportunities for Greater Cannabis and Juva Life

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Greater Cannabis and Juva Life

If you would invest  0.06  in Greater Cannabis on September 7, 2024 and sell it today you would lose (0.01) from holding Greater Cannabis or give up 16.67% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Greater Cannabis  vs.  Juva Life

 Performance 
       Timeline  
Greater Cannabis 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Greater Cannabis are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Greater Cannabis displayed solid returns over the last few months and may actually be approaching a breakup point.
Juva Life 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Juva Life are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Juva Life reported solid returns over the last few months and may actually be approaching a breakup point.

Greater Cannabis and Juva Life Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Greater Cannabis and Juva Life

The main advantage of trading using opposite Greater Cannabis and Juva Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Cannabis position performs unexpectedly, Juva 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 Juva Life will offset losses from the drop in Juva Life's long position.
The idea behind Greater Cannabis and Juva Life 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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