Correlation Between Agile Thrpe and Canopy Growth
Can any of the company-specific risk be diversified away by investing in both Agile Thrpe and Canopy Growth 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 Agile Thrpe and Canopy Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agile Thrpe and Canopy Growth Corp, you can compare the effects of market volatilities on Agile Thrpe and Canopy Growth 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 Agile Thrpe with a short position of Canopy Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Thrpe and Canopy Growth.
Diversification Opportunities for Agile Thrpe and Canopy Growth
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agile and Canopy is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Agile Thrpe and Canopy Growth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canopy Growth Corp and Agile Thrpe 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 Agile Thrpe are associated (or correlated) with Canopy Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canopy Growth Corp has no effect on the direction of Agile Thrpe i.e., Agile Thrpe and Canopy Growth go up and down completely randomly.
Pair Corralation between Agile Thrpe and Canopy Growth
If you would invest 294.00 in Agile Thrpe on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Agile Thrpe or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.26% |
| Values | Daily Returns |
Agile Thrpe vs. Canopy Growth Corp
Performance |
| Timeline |
| Agile Thrpe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canopy Growth Corp |
Agile Thrpe and Canopy Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agile Thrpe and Canopy Growth
The main advantage of trading using opposite Agile Thrpe and Canopy Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agile Thrpe position performs unexpectedly, Canopy Growth 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 Canopy Growth will offset losses from the drop in Canopy Growth's long position.| Agile Thrpe vs. Assertio Therapeutics | Agile Thrpe vs. Amneal Pharmaceuticals, Class | Agile Thrpe vs. Lifecore Biomedical | Agile Thrpe vs. Alpha Teknova |
| Canopy Growth vs. ioneer Ltd American | Canopy Growth vs. Summa Silver Corp | Canopy Growth vs. Vindicator Silver Lead Mining | Canopy Growth vs. Entravision Communications |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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