Correlation Between MJ Holdings and Americann

Can any of the company-specific risk be diversified away by investing in both MJ Holdings and Americann 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 MJ Holdings and Americann into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MJ Holdings and Americann, you can compare the effects of market volatilities on MJ Holdings and Americann 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 MJ Holdings with a short position of Americann. Check out your portfolio center. Please also check ongoing floating volatility patterns of MJ Holdings and Americann.

Diversification Opportunities for MJ Holdings and Americann

0.0

Correlation Coefficient

MJ Holdings  Americann

Pay attention - limited upside

The 3 months correlation between MJNE and Americann is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MJ Holdings and Americann in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americann and MJ Holdings 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 MJ Holdings are associated (or correlated) with Americann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americann has no effect on the direction of MJ Holdings i.e., MJ Holdings and Americann go up and down completely randomly.

Pair Corralation between MJ Holdings and Americann

If you would invest  0.01  in Americann on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Americann or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

MJ Holdings  vs.  Americann

MJ Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days MJ Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Americann

Risk-Adjusted Performance

Very Weak

Over the last 90 days Americann has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Americann is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with MJ Holdings and Americann

The main advantage of trading using opposite MJ Holdings and Americann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MJ Holdings position performs unexpectedly, Americann 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 Americann will offset losses from the drop in Americann's long position.

The idea behind MJ Holdings and Americann 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.

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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.