Correlation Between Supreme Cannabis and H Lundbeck
Can any of the company-specific risk be diversified away by investing in both Supreme Cannabis and H Lundbeck 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 Supreme Cannabis and H Lundbeck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Supreme Cannabis and H Lundbeck AS, you can compare the effects of market volatilities on Supreme Cannabis and H Lundbeck 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 Supreme Cannabis with a short position of H Lundbeck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supreme Cannabis and H Lundbeck.
Diversification Opportunities for Supreme Cannabis and H Lundbeck
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Supreme and HLUKF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Supreme Cannabis and H Lundbeck AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H Lundbeck AS and Supreme 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 The Supreme Cannabis are associated (or correlated) with H Lundbeck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H Lundbeck AS has no effect on the direction of Supreme Cannabis i.e., Supreme Cannabis and H Lundbeck go up and down completely randomly.
Pair Corralation between Supreme Cannabis and H Lundbeck
If you would invest (100.00) in H Lundbeck AS on January 24, 2024 and sell it today you would earn a total of 100.00 from holding H Lundbeck AS or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Supreme Cannabis vs. H Lundbeck AS
Performance |
| Timeline |
| Supreme Cannabis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| H Lundbeck AS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Supreme Cannabis and H Lundbeck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supreme Cannabis and H Lundbeck
The main advantage of trading using opposite Supreme Cannabis and H Lundbeck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supreme Cannabis position performs unexpectedly, H Lundbeck 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 H Lundbeck will offset losses from the drop in H Lundbeck's long position.| Supreme Cannabis vs. VirnetX Holding Corp | Supreme Cannabis vs. Sapiens International | Supreme Cannabis vs. Park City Group | Supreme Cannabis vs. NETGEAR |
| H Lundbeck vs. National Beverage Corp | H Lundbeck vs. Ambev SA ADR | H Lundbeck vs. Antero Midstream Partners | H Lundbeck vs. Keurig Dr Pepper |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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