Correlation Between Zerify and Global Cannabis

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

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

Diversification Opportunities for Zerify and Global Cannabis

-0.04

Correlation Coefficient

Zerify  Global Cannabis

Good diversification

The 3 months correlation between Zerify and Global is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Zerify Inc and Global Cannabis Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Cannabis Appl and Zerify 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 Zerify Inc are associated (or correlated) with Global Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Cannabis Appl has no effect on the direction of Zerify i.e., Zerify and Global Cannabis go up and down completely randomly.

Pair Corralation between Zerify and Global Cannabis

Given the investment horizon of 90 days Zerify Inc is expected to generate 10.4 times more return on investment than Global Cannabis. However, Zerify is 10.4 times more volatile than Global Cannabis Applications. It trades about 0.16 of its potential returns per unit of risk. Global Cannabis Applications is currently generating about 0.07 per unit of risk. If you would invest  0.01  in Zerify Inc on September 1, 2024 and sell it today you would earn a total of  0.00  from holding Zerify Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Zerify Inc  vs.  Global Cannabis Applications

Zerify Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zerify Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Zerify showed solid returns over the last few months and may actually be approaching a breakup point.

Global Cannabis Appl

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global Cannabis Applications are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Global Cannabis reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zerify and Global Cannabis

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

The idea behind Zerify Inc and Global Cannabis Applications 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.