Correlation Between AG Mortgage and Cannabis Suisse
Can any of the company-specific risk be diversified away by investing in both AG Mortgage and Cannabis Suisse 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 AG Mortgage and Cannabis Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AG Mortgage Investment and Cannabis Suisse Corp, you can compare the effects of market volatilities on AG Mortgage and Cannabis Suisse 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 AG Mortgage with a short position of Cannabis Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Mortgage and Cannabis Suisse.
Diversification Opportunities for AG Mortgage and Cannabis Suisse
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MITT and Cannabis is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment and Cannabis Suisse Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Suisse Corp and AG Mortgage 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 AG Mortgage Investment are associated (or correlated) with Cannabis Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Suisse Corp has no effect on the direction of AG Mortgage i.e., AG Mortgage and Cannabis Suisse go up and down completely randomly.
Pair Corralation between AG Mortgage and Cannabis Suisse
Given the investment horizon of 90 days AG Mortgage is expected to generate 15.38 times less return on investment than Cannabis Suisse. But when comparing it to its historical volatility, AG Mortgage Investment is 17.2 times less risky than Cannabis Suisse. It trades about 0.11 of its potential returns per unit of risk. Cannabis Suisse Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.90 in Cannabis Suisse Corp on August 29, 2025 and sell it today you would lose (0.17) from holding Cannabis Suisse Corp or give up 18.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Mortgage Investment vs. Cannabis Suisse Corp
Performance |
| Timeline |
| AG Mortgage Investment |
| Cannabis Suisse Corp |
AG Mortgage and Cannabis Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Mortgage and Cannabis Suisse
The main advantage of trading using opposite AG Mortgage and Cannabis Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Mortgage position performs unexpectedly, Cannabis Suisse 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 Cannabis Suisse will offset losses from the drop in Cannabis Suisse's long position.| AG Mortgage vs. Dynex Capital | AG Mortgage vs. Ready Capital Corp | AG Mortgage vs. Ellington Residential Mortgage | AG Mortgage vs. Arbor Realty Trust |
| Cannabis Suisse vs. Materialise NV | Cannabis Suisse vs. Yulong Eco Materials | Cannabis Suisse vs. Mitsubishi Materials | Cannabis Suisse vs. Kossan Rubber Industries |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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