Correlation Between CbdMD and Anteris Technologies

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

By analyzing existing cross correlation between cbdMD Inc and Anteris Technologies Global, you can compare the effects of market volatilities on CbdMD and Anteris Technologies 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 CbdMD with a short position of Anteris Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CbdMD and Anteris Technologies.

Diversification Opportunities for CbdMD and Anteris Technologies

-0.34

Correlation Coefficient

CbdMD  Anteris Technologies

Very good diversification

The 3 months correlation between CbdMD and Anteris is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding cbdMD Inc and Anteris Technologies Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and CbdMD 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 cbdMD Inc are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of CbdMD i.e., CbdMD and Anteris Technologies go up and down completely randomly.

Pair Corralation between CbdMD and Anteris Technologies

Assuming the 90 days trading horizon cbdMD Inc is expected to generate 2.3 times more return on investment than Anteris Technologies. However, CbdMD is 2.3 times more volatile than Anteris Technologies Global. It trades about -0.03 of its potential returns per unit of risk. Anteris Technologies Global is currently generating about -0.15 per unit of risk. If you would invest  363.00  in cbdMD Inc on October 11, 2024 and sell it today you would lose (277.00) from holding cbdMD Inc or give up 76.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	3.91%
Values	Daily Returns

cbdMD Inc  vs.  Anteris Technologies Global

cbdMD Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in cbdMD Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, CbdMD sustained solid returns over the last few months and may actually be approaching a breakup point.

Anteris Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anteris Technologies Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with CbdMD and Anteris Technologies

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

The idea behind cbdMD Inc and Anteris Technologies Global 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.