Correlation Between Acreage Holdings and RIV Capital
Can any of the company-specific risk be diversified away by investing in both Acreage Holdings and RIV Capital 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 Acreage Holdings and RIV Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acreage Holdings and RIV Capital, you can compare the effects of market volatilities on Acreage Holdings and RIV Capital 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 Acreage Holdings with a short position of RIV Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acreage Holdings and RIV Capital.
Diversification Opportunities for Acreage Holdings and RIV Capital
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acreage and RIV is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Acreage Holdings and RIV Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RIV Capital and Acreage 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 Acreage Holdings are associated (or correlated) with RIV Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RIV Capital has no effect on the direction of Acreage Holdings i.e., Acreage Holdings and RIV Capital go up and down completely randomly.
Pair Corralation between Acreage Holdings and RIV Capital
Assuming the 90 days horizon Acreage Holdings is expected to generate 1.58 times more return on investment than RIV Capital. However, Acreage Holdings is 1.58 times more volatile than RIV Capital. It trades about 0.04 of its potential returns per unit of risk. RIV Capital is currently generating about 0.04 per unit of risk. If you would invest 53.00 in Acreage Holdings on August 26, 2024 and sell it today you would lose (39.00) from holding Acreage Holdings or give up 73.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acreage Holdings vs. RIV Capital
Performance |
| Timeline |
| Acreage Holdings |
| RIV Capital |
Acreage Holdings and RIV Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acreage Holdings and RIV Capital
The main advantage of trading using opposite Acreage Holdings and RIV Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acreage Holdings position performs unexpectedly, RIV Capital 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 RIV Capital will offset losses from the drop in RIV Capital's long position.| Acreage Holdings vs. AYR Strategies Class | Acreage Holdings vs. RIV Capital | Acreage Holdings vs. Verano Holdings Corp | Acreage Holdings vs. BZAM |
| RIV Capital vs. Green Cures Botanical | RIV Capital vs. Galexxy Holdings | RIV Capital vs. Indoor Harvest Corp | RIV Capital vs. Speakeasy Cannabis Club |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |