Correlation Between Khiron Life and Cannabis One
Can any of the company-specific risk be diversified away by investing in both Khiron Life 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 Khiron Life and Cannabis One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Cannabis One Holdings, you can compare the effects of market volatilities on Khiron Life 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 Khiron Life with a short position of Cannabis One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Cannabis One.
Diversification Opportunities for Khiron Life and Cannabis One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and Cannabis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences 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 Khiron Life 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 Khiron Life Sciences 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 Khiron Life i.e., Khiron Life and Cannabis One go up and down completely randomly.
Pair Corralation between Khiron Life and Cannabis One
Assuming the 90 days horizon Khiron Life Sciences is expected to generate 9.15 times more return on investment than Cannabis One. However, Khiron Life is 9.15 times more volatile than Cannabis One Holdings. It trades about 0.06 of its potential returns per unit of risk. Cannabis One Holdings is currently generating about -0.09 per unit of risk. If you would invest 7.60 in Khiron Life Sciences on September 6, 2024 and sell it today you would lose (7.59) from holding Khiron Life Sciences or give up 99.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Khiron Life Sciences vs. Cannabis One Holdings
Performance |
Timeline |
Khiron Life Sciences |
Cannabis One Holdings |
Khiron Life and Cannabis One Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Khiron Life and Cannabis One
The main advantage of trading using opposite Khiron Life and Cannabis One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life 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.Khiron Life vs. Blueberries Medical Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. City View Green | Khiron Life vs. Benchmark Botanics |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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