Correlation Between Canna Global and Gores Holdings

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

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

Diversification Opportunities for Canna Global and Gores Holdings

0.11

Correlation Coefficient

Canna Global  Gores Holdings

Average diversification

The 3 months correlation between Canna and Gores is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Canna Global Acquisition Corp and Gores Holdings IX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gores Holdings IX and Canna Global 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 Canna Global Acquisition Corp are associated (or correlated) with Gores Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gores Holdings IX has no effect on the direction of Canna Global i.e., Canna Global and Gores Holdings go up and down completely randomly.

Pair Corralation between Canna Global and Gores Holdings

If you would invest  0.03  in Canna Global Acquisition Corp on September 17, 2024 and sell it today you would earn a total of  0.00  from holding Canna Global Acquisition Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	6.67%
Values	Daily Returns

Canna Global Acquisition Corp  vs.  Gores Holdings IX

Canna Global Acquisi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Gores Holdings IX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gores Holdings IX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Gores Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Canna Global and Gores Holdings

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

The idea behind Canna Global Acquisition Corp and Gores Holdings IX 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..