Correlation Between Im Cannabis and CuraScientific Corp

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

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

Diversification Opportunities for Im Cannabis and CuraScientific Corp

0.0

Correlation Coefficient

Im Cannabis  CuraScientific Corp

Pay attention - limited upside

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

Pair Corralation between Im Cannabis and CuraScientific Corp

Given the investment horizon of 90 days Im Cannabis is expected to generate 42.31 times less return on investment than CuraScientific Corp. But when comparing it to its historical volatility, Im Cannabis Corp is 6.44 times less risky than CuraScientific Corp. It trades about 0.01 of its potential returns per unit of risk. CuraScientific Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  5.00  in CuraScientific Corp on October 12, 2024 and sell it today you would lose (5.00) from holding CuraScientific Corp or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Im Cannabis Corp  vs.  CuraScientific Corp

Im Cannabis Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Im Cannabis Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Im Cannabis exhibited solid returns over the last few months and may actually be approaching a breakup point.

CuraScientific Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Im Cannabis and CuraScientific Corp

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

The idea behind Im Cannabis Corp and CuraScientific 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.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.