Correlation Between CuraScientific and CordovaCann Corp

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

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

Diversification Opportunities for CuraScientific and CordovaCann Corp

0.0

Correlation Coefficient

CuraScientific  CordovaCann Corp

Pay attention - limited upside

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

Pair Corralation between CuraScientific and CordovaCann Corp

If you would invest  2.50  in CordovaCann Corp on December 1, 2024 and sell it today you would earn a total of  3.80  from holding CordovaCann Corp or generate 152.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CuraScientific  vs.  CordovaCann Corp

CuraScientific

Risk-Adjusted Performance

Very Weak

Over the last 90 days CuraScientific has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CuraScientific is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

CordovaCann Corp

Risk-Adjusted Performance

Good

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

Pair Trading with CuraScientific and CordovaCann Corp

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

The idea behind CuraScientific and CordovaCann 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.