Correlation Between DelphX Capital and Canopy Growth
Can any of the company-specific risk be diversified away by investing in both DelphX Capital and Canopy Growth 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 DelphX Capital and Canopy Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DelphX Capital Markets and Canopy Growth Corp, you can compare the effects of market volatilities on DelphX Capital and Canopy Growth 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 DelphX Capital with a short position of Canopy Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of DelphX Capital and Canopy Growth.
Diversification Opportunities for DelphX Capital and Canopy Growth
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DelphX and Canopy is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DelphX Capital Markets and Canopy Growth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canopy Growth Corp and DelphX Capital 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 DelphX Capital Markets are associated (or correlated) with Canopy Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canopy Growth Corp has no effect on the direction of DelphX Capital i.e., DelphX Capital and Canopy Growth go up and down completely randomly.
Pair Corralation between DelphX Capital and Canopy Growth
Assuming the 90 days trading horizon DelphX Capital Markets is expected to under-perform the Canopy Growth. In addition to that, DelphX Capital is 1.36 times more volatile than Canopy Growth Corp. It trades about -0.1 of its total potential returns per unit of risk. Canopy Growth Corp is currently generating about -0.08 per unit of volatility. If you would invest 247.00 in Canopy Growth Corp on August 29, 2025 and sell it today you would lose (77.00) from holding Canopy Growth Corp or give up 31.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
DelphX Capital Markets vs. Canopy Growth Corp
Performance |
| Timeline |
| DelphX Capital Markets |
| Canopy Growth Corp |
DelphX Capital and Canopy Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DelphX Capital and Canopy Growth
The main advantage of trading using opposite DelphX Capital and Canopy Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DelphX Capital position performs unexpectedly, Canopy Growth 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 Canopy Growth will offset losses from the drop in Canopy Growth's long position.| DelphX Capital vs. Metalero Mining Corp | DelphX Capital vs. Bankers Petroleum | DelphX Capital vs. National Bank of | DelphX Capital vs. Mako Mining Corp |
| Canopy Growth vs. DGL Investments No1 | Canopy Growth vs. Global Crossing Airlines | Canopy Growth vs. Canlan Ice Sports | Canopy Growth vs. Mako Mining Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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