Correlation Between Speakeasy Cannabis and CanaQuest Medical

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

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

Diversification Opportunities for Speakeasy Cannabis and CanaQuest Medical

0.0

Correlation Coefficient

Speakeasy Cannabis  CanaQuest Medical

Pay attention - limited upside

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

Pair Corralation between Speakeasy Cannabis and CanaQuest Medical

If you would invest  4.77  in CanaQuest Medical Corp on September 3, 2024 and sell it today you would lose (1.77) from holding CanaQuest Medical Corp or give up 37.11% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Speakeasy Cannabis Club  vs.  CanaQuest Medical Corp

Speakeasy Cannabis Club

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Speakeasy Cannabis Club has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Speakeasy Cannabis is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

CanaQuest Medical Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CanaQuest Medical Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CanaQuest Medical may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Speakeasy Cannabis and CanaQuest Medical

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

The idea behind Speakeasy Cannabis Club and CanaQuest Medical 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.