Correlation Between Im Cannabis and Harrow Health,

Can any of the company-specific risk be diversified away by investing in both Im Cannabis and Harrow Health, 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 Harrow Health, 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 Harrow Health, 11875, you can compare the effects of market volatilities on Im Cannabis and Harrow Health, 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 Harrow Health,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Im Cannabis and Harrow Health,.

Diversification Opportunities for Im Cannabis and Harrow Health,

0.01

Correlation Coefficient

Im Cannabis  Harrow Health,

Significant diversification

The 3 months correlation between IMCC and Harrow is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Im Cannabis Corp and Harrow Health, 11875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harrow Health, 11875 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 Harrow Health,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harrow Health, 11875 has no effect on the direction of Im Cannabis i.e., Im Cannabis and Harrow Health, go up and down completely randomly.

Pair Corralation between Im Cannabis and Harrow Health,

Given the investment horizon of 90 days Im Cannabis Corp is expected to under-perform the Harrow Health,. In addition to that, Im Cannabis is 11.33 times more volatile than Harrow Health, 11875. It trades about -0.08 of its total potential returns per unit of risk. Harrow Health, 11875 is currently generating about 0.06 per unit of volatility. If you would invest  2,612  in Harrow Health, 11875 on October 5, 2024 and sell it today you would earn a total of  16.00  from holding Harrow Health, 11875 or generate 0.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Im Cannabis Corp  vs.  Harrow Health, 11875

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.

Harrow Health, 11875

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harrow Health, 11875 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Harrow Health, is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Im Cannabis and Harrow Health,

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

The idea behind Im Cannabis Corp and Harrow Health, 11875 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.