Correlation Between Cannabis Strategic and Agra Ventures

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

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

Diversification Opportunities for Cannabis Strategic and Agra Ventures

-1.0

Correlation Coefficient

Cannabis Strategic  Agra Ventures

Pay attention - limited upside

The 3 months correlation between Cannabis and Agra is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis Strategic Ventures and Agra Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agra Ventures and Cannabis Strategic 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 Cannabis Strategic Ventures are associated (or correlated) with Agra Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agra Ventures has no effect on the direction of Cannabis Strategic i.e., Cannabis Strategic and Agra Ventures go up and down completely randomly.

Pair Corralation between Cannabis Strategic and Agra Ventures

If you would invest  1.55  in Agra Ventures on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Agra Ventures or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Strong
Accuracy	95.31%
Values	Daily Returns

Cannabis Strategic Ventures  vs.  Agra Ventures

Cannabis Strategic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cannabis Strategic Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Cannabis Strategic is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Agra Ventures

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Cannabis Strategic and Agra Ventures

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

The idea behind Cannabis Strategic Ventures and Agra Ventures 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.