Correlation Between Advantis Corp and Im Cannabis

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

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

Diversification Opportunities for Advantis Corp and Im Cannabis

0.0

Correlation Coefficient

Advantis Corp  Im Cannabis

Pay attention - limited upside

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

Pair Corralation between Advantis Corp and Im Cannabis

If you would invest  0.00  in Advantis Corp on December 19, 2024 and sell it today you would earn a total of  0.00  from holding Advantis Corp or generate 0.0% return on investment over 90 days.

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

Advantis Corp  vs.  Im Cannabis Corp

Advantis Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advantis Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Advantis Corp is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Im Cannabis Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Im Cannabis Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Advantis Corp and Im Cannabis

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

The idea behind Advantis Corp and Im Cannabis Corp 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.