Correlation Between Nova Cannabis and GABY
Can any of the company-specific risk be diversified away by investing in both Nova Cannabis and GABY 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 Nova Cannabis and GABY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nova Cannabis and GABY Inc, you can compare the effects of market volatilities on Nova Cannabis and GABY 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 Nova Cannabis with a short position of GABY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nova Cannabis and GABY.
Diversification Opportunities for Nova Cannabis and GABY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nova and GABY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nova Cannabis and GABY Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GABY Inc and Nova 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 Nova Cannabis are associated (or correlated) with GABY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GABY Inc has no effect on the direction of Nova Cannabis i.e., Nova Cannabis and GABY go up and down completely randomly.
Pair Corralation between Nova Cannabis and GABY
If you would invest 0.14 in GABY Inc on March 10, 2024 and sell it today you would earn a total of 0.00 from holding GABY Inc or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nova Cannabis vs. GABY Inc
Performance |
Timeline |
Nova Cannabis |
GABY Inc |
Nova Cannabis and GABY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nova Cannabis and GABY
The main advantage of trading using opposite Nova Cannabis and GABY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nova Cannabis position performs unexpectedly, GABY 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 GABY will offset losses from the drop in GABY's long position.Nova Cannabis vs. Leafly Holdings | Nova Cannabis vs. Trxade Group | Nova Cannabis vs. Leafly Holdings | Nova Cannabis vs. SunLink Health Systems |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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