Correlation Between Im Cannabis and Taysha Gene

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

Diversification Opportunities for Im Cannabis and Taysha Gene

0.78

Correlation Coefficient

Im Cannabis  Taysha Gene

Poor diversification

The 3 months correlation between IMCC and Taysha is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Im Cannabis Corp and Taysha Gene Therapies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taysha Gene Therapies 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 Taysha Gene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taysha Gene Therapies has no effect on the direction of Im Cannabis i.e., Im Cannabis and Taysha Gene go up and down completely randomly.

Pair Corralation between Im Cannabis and Taysha Gene

Given the investment horizon of 90 days Im Cannabis Corp is expected to generate 1.3 times more return on investment than Taysha Gene. However, Im Cannabis is 1.3 times more volatile than Taysha Gene Therapies. It trades about 0.02 of its potential returns per unit of risk. Taysha Gene Therapies is currently generating about 0.01 per unit of risk. If you would invest  348.00  in Im Cannabis Corp on October 12, 2024 and sell it today you would lose (99.00) from holding Im Cannabis Corp or give up 28.45% of portfolio value over 90 days.

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

Im Cannabis Corp  vs.  Taysha Gene Therapies

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.

Taysha Gene Therapies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Taysha Gene Therapies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical indicators, Taysha Gene sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Im Cannabis and Taysha Gene

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

The idea behind Im Cannabis Corp and Taysha Gene Therapies 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.