Correlation Between Ascend Wellness and Aleafia Health
Can any of the company-specific risk be diversified away by investing in both Ascend Wellness and Aleafia Health 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 Ascend Wellness and Aleafia Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascend Wellness Holdings and Aleafia Health, you can compare the effects of market volatilities on Ascend Wellness and Aleafia Health 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 Ascend Wellness with a short position of Aleafia Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascend Wellness and Aleafia Health.
Diversification Opportunities for Ascend Wellness and Aleafia Health
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ascend and Aleafia is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ascend Wellness Holdings and Aleafia Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aleafia Health and Ascend Wellness 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 Ascend Wellness Holdings are associated (or correlated) with Aleafia Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aleafia Health has no effect on the direction of Ascend Wellness i.e., Ascend Wellness and Aleafia Health go up and down completely randomly.
Pair Corralation between Ascend Wellness and Aleafia Health
If you would invest 1.51 in Aleafia Health on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Aleafia Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ascend Wellness Holdings vs. Aleafia Health
Performance |
| Timeline |
| Ascend Wellness Holdings |
| Aleafia Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ascend Wellness and Aleafia Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascend Wellness and Aleafia Health
The main advantage of trading using opposite Ascend Wellness and Aleafia Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascend Wellness position performs unexpectedly, Aleafia Health 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 Aleafia Health will offset losses from the drop in Aleafia Health's long position.| Ascend Wellness vs. Verano Holdings Corp | Ascend Wellness vs. Green Thumb Industries | Ascend Wellness vs. AYR Strategies Class | Ascend Wellness vs. Trulieve Cannabis Corp |
| Aleafia Health vs. Acreage Holdings | Aleafia Health vs. Verano Holdings Corp | Aleafia Health vs. Pharmagreen Biotech | Aleafia Health vs. Mydecine Innovations Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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