Correlation Between Cannagrow Holdings and Dexterra

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

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

Diversification Opportunities for Cannagrow Holdings and Dexterra

-0.08

Correlation Coefficient

Cannagrow Holdings  Dexterra

Good diversification

The 3 months correlation between Cannagrow and Dexterra is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cannagrow Holdings and Dexterra Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dexterra Group and Cannagrow Holdings 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 Cannagrow Holdings are associated (or correlated) with Dexterra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dexterra Group has no effect on the direction of Cannagrow Holdings i.e., Cannagrow Holdings and Dexterra go up and down completely randomly.

Pair Corralation between Cannagrow Holdings and Dexterra

If you would invest  468.00  in Dexterra Group on September 4, 2024 and sell it today you would earn a total of  44.00  from holding Dexterra Group or generate 9.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Cannagrow Holdings  vs.  Dexterra Group

Cannagrow Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cannagrow Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Cannagrow Holdings is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Dexterra Group

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dexterra Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Dexterra may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Cannagrow Holdings and Dexterra

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

The idea behind Cannagrow Holdings and Dexterra Group 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.