Correlation Between YourWay Cannabis and Genomma Lab

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

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

Diversification Opportunities for YourWay Cannabis and Genomma Lab

0.0

Correlation Coefficient

YourWay Cannabis  Genomma Lab

Pay attention - limited upside

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

Pair Corralation between YourWay Cannabis and Genomma Lab

Assuming the 90 days horizon YourWay Cannabis is expected to generate 1.25 times less return on investment than Genomma Lab. In addition to that, YourWay Cannabis is 1.52 times more volatile than Genomma Lab Internacional. It trades about 0.07 of its total potential returns per unit of risk. Genomma Lab Internacional is currently generating about 0.13 per unit of volatility. If you would invest  84.00  in Genomma Lab Internacional on September 29, 2024 and sell it today you would earn a total of  43.00  from holding Genomma Lab Internacional or generate 51.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	58.27%
Values	Daily Returns

YourWay Cannabis Brands  vs.  Genomma Lab Internacional

YourWay Cannabis Brands

Risk-Adjusted Performance

0 of 100

Very Weak

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

Genomma Lab Internacional

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Genomma Lab Internacional has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly inconsistent essential indicators, Genomma Lab reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YourWay Cannabis and Genomma Lab

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

The idea behind YourWay Cannabis Brands and Genomma Lab Internacional 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.