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
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agile and Canopy is 0.48. 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
Given the investment horizon of 90 days Agile Thrpe is expected to under-perform the Canopy Growth. But the stock apears to be less risky and, when comparing its historical volatility, Agile Thrpe is 1.79 times less risky than Canopy Growth. The stock trades about -0.13 of its potential returns per unit of risk. The Canopy Growth Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,090 in Canopy Growth Corp on September 14, 2024 and sell it today you would lose (1,774) from holding Canopy Growth Corp or give up 84.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 29.15% |
| 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. Micron Technology | Canopy Growth vs. Sweetgreen | Canopy Growth vs. Ark Restaurants Corp | Canopy Growth vs. STMicroelectronics NV ADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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