Correlation Between Curaleaf Holdings and Cann American
Can any of the company-specific risk be diversified away by investing in both Curaleaf Holdings and Cann American 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 Curaleaf Holdings and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curaleaf Holdings and Cann American Corp, you can compare the effects of market volatilities on Curaleaf Holdings and Cann American 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 Curaleaf Holdings with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curaleaf Holdings and Cann American.
Diversification Opportunities for Curaleaf Holdings and Cann American
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Curaleaf and Cann is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Curaleaf Holdings and Cann American Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cann American Corp and Curaleaf 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 Curaleaf Holdings are associated (or correlated) with Cann American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cann American Corp has no effect on the direction of Curaleaf Holdings i.e., Curaleaf Holdings and Cann American go up and down completely randomly.
Pair Corralation between Curaleaf Holdings and Cann American
Assuming the 90 days horizon Curaleaf Holdings is expected to under-perform the Cann American. But the otc stock apears to be less risky and, when comparing its historical volatility, Curaleaf Holdings is 4.19 times less risky than Cann American. The otc stock trades about -0.11 of its potential returns per unit of risk. The Cann American Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.30 in Cann American Corp on December 2, 2024 and sell it today you would earn a total of 0.08 from holding Cann American Corp or generate 26.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.31% |
Values | Daily Returns |
Curaleaf Holdings vs. Cann American Corp
Performance |
Timeline |
Curaleaf Holdings |
Cann American Corp |
Curaleaf Holdings and Cann American Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Curaleaf Holdings and Cann American
The main advantage of trading using opposite Curaleaf Holdings and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curaleaf Holdings position performs unexpectedly, Cann American 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 Cann American will offset losses from the drop in Cann American's long position.Curaleaf Holdings vs. Green Thumb Industries | Curaleaf Holdings vs. Cresco Labs | Curaleaf Holdings vs. Trulieve Cannabis Corp | Curaleaf Holdings vs. Cronos Group |
Cann American vs. XCPCNL Business Services | Cann American vs. Golden Developing Solutions | Cann American vs. Indo Global Exchange | Cann American vs. Cgrowth Capital |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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