Correlation Between Dexterra and Cannagrow Holdings

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

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

Diversification Opportunities for Dexterra and Cannagrow Holdings

0.0

Correlation Coefficient

Dexterra  Cannagrow Holdings

Pay attention - limited upside

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

Pair Corralation between Dexterra and Cannagrow Holdings

If you would invest  545.00  in Dexterra Group on December 30, 2024 and sell it today you would lose (9.00) from holding Dexterra Group or give up 1.65% of portfolio value over 90 days.

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

Dexterra Group  vs.  Cannagrow Holdings

Dexterra Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dexterra Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Dexterra is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cannagrow Holdings

Risk-Adjusted Performance

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.

Pair Trading with Dexterra and Cannagrow Holdings

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

The idea behind Dexterra Group and Cannagrow Holdings 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.