Correlation Between Im Cannabis and Sutro Biopharma
Can any of the company-specific risk be diversified away by investing in both Im Cannabis and Sutro Biopharma 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 Sutro Biopharma 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 Sutro Biopharma, you can compare the effects of market volatilities on Im Cannabis and Sutro Biopharma 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 Sutro Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Im Cannabis and Sutro Biopharma.
Diversification Opportunities for Im Cannabis and Sutro Biopharma
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IMCC and Sutro is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Im Cannabis Corp and Sutro Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sutro Biopharma 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 Sutro Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sutro Biopharma has no effect on the direction of Im Cannabis i.e., Im Cannabis and Sutro Biopharma go up and down completely randomly.
Pair Corralation between Im Cannabis and Sutro Biopharma
Given the investment horizon of 90 days Im Cannabis Corp is expected to generate 1.69 times more return on investment than Sutro Biopharma. However, Im Cannabis is 1.69 times more volatile than Sutro Biopharma. It trades about 0.08 of its potential returns per unit of risk. Sutro Biopharma is currently generating about -0.13 per unit of risk. If you would invest 222.00 in Im Cannabis Corp on October 9, 2024 and sell it today you would earn a total of 49.00 from holding Im Cannabis Corp or generate 22.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Im Cannabis Corp vs. Sutro Biopharma
Performance |
Timeline |
Im Cannabis Corp |
Sutro Biopharma |
Im Cannabis and Sutro Biopharma Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Im Cannabis and Sutro Biopharma
The main advantage of trading using opposite Im Cannabis and Sutro Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Im Cannabis position performs unexpectedly, Sutro Biopharma 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 Sutro Biopharma will offset losses from the drop in Sutro Biopharma's long position.Im Cannabis vs. Clever Leaves Holdings | Im Cannabis vs. Khiron Life Sciences | Im Cannabis vs. Allied Corp | Im Cannabis vs. Biofrontera |
Sutro Biopharma vs. Vaxcyte | Sutro Biopharma vs. Larimar Therapeutics | Sutro Biopharma vs. Syndax Pharmaceuticals | Sutro Biopharma vs. Merus BV |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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