Correlation Between Canopy Growth and Danske Invest
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By analyzing existing cross correlation between Canopy Growth Corp and Danske Invest Fjernosten, you can compare the effects of market volatilities on Canopy Growth and Danske Invest 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 Canopy Growth with a short position of Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canopy Growth and Danske Invest.
Diversification Opportunities for Canopy Growth and Danske Invest
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canopy and Danske is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Canopy Growth Corp and Danske Invest Fjernosten in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Fjernosten and Canopy Growth 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 Canopy Growth Corp are associated (or correlated) with Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest Fjernosten has no effect on the direction of Canopy Growth i.e., Canopy Growth and Danske Invest go up and down completely randomly.
Pair Corralation between Canopy Growth and Danske Invest
Considering the 90-day investment horizon Canopy Growth Corp is expected to generate 13.28 times more return on investment than Danske Invest. However, Canopy Growth is 13.28 times more volatile than Danske Invest Fjernosten. It trades about 0.19 of its potential returns per unit of risk. Danske Invest Fjernosten is currently generating about -0.02 per unit of risk. If you would invest 620.00 in Canopy Growth Corp on January 25, 2024 and sell it today you would earn a total of 294.00 from holding Canopy Growth Corp or generate 47.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Canopy Growth Corp vs. Danske Invest Fjernosten
Performance |
| Timeline |
| Canopy Growth Corp |
| Danske Invest Fjernosten |
Canopy Growth and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canopy Growth and Danske Invest
The main advantage of trading using opposite Canopy Growth and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canopy Growth position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest's long position.The idea behind Canopy Growth Corp and Danske Invest Fjernosten 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.| Danske Invest vs. Novo Nordisk AS | Danske Invest vs. Nordea Bank Abp | Danske Invest vs. DSV Panalpina AS | Danske Invest vs. AP Mller |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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