Correlation Between Ascend Wellness and Raphael Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Ascend Wellness and Raphael Pharmaceutical 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 Raphael Pharmaceutical 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 Raphael Pharmaceutical, you can compare the effects of market volatilities on Ascend Wellness and Raphael Pharmaceutical 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 Raphael Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascend Wellness and Raphael Pharmaceutical.
Diversification Opportunities for Ascend Wellness and Raphael Pharmaceutical
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ascend and Raphael is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ascend Wellness Holdings and Raphael Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raphael Pharmaceutical 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 Raphael Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raphael Pharmaceutical has no effect on the direction of Ascend Wellness i.e., Ascend Wellness and Raphael Pharmaceutical go up and down completely randomly.
Pair Corralation between Ascend Wellness and Raphael Pharmaceutical
If you would invest 26.00 in Raphael Pharmaceutical on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Raphael Pharmaceutical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascend Wellness Holdings vs. Raphael Pharmaceutical
Performance |
| Timeline |
| Ascend Wellness Holdings |
| Raphael Pharmaceutical |
Ascend Wellness and Raphael Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascend Wellness and Raphael Pharmaceutical
The main advantage of trading using opposite Ascend Wellness and Raphael Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascend Wellness position performs unexpectedly, Raphael Pharmaceutical 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 Raphael Pharmaceutical will offset losses from the drop in Raphael Pharmaceutical'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 |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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