Correlation Between Agile Thrpe and Hexo Corp
Can any of the company-specific risk be diversified away by investing in both Agile Thrpe and Hexo Corp 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 Hexo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agile Thrpe and Hexo Corp, you can compare the effects of market volatilities on Agile Thrpe and Hexo Corp 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 Hexo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Thrpe and Hexo Corp.
Diversification Opportunities for Agile Thrpe and Hexo Corp
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agile and Hexo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Agile Thrpe and Hexo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexo 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 Hexo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexo Corp has no effect on the direction of Agile Thrpe i.e., Agile Thrpe and Hexo Corp go up and down completely randomly.
Pair Corralation between Agile Thrpe and Hexo Corp
Given the investment horizon of 90 days Agile Thrpe is expected to under-perform the Hexo Corp. But the stock apears to be less risky and, when comparing its historical volatility, Agile Thrpe is 1.17 times less risky than Hexo Corp. The stock trades about -0.13 of its potential returns per unit of risk. The Hexo Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 93.00 in Hexo Corp on September 14, 2024 and sell it today you would lose (22.00) from holding Hexo Corp or give up 23.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.19% |
| Values | Daily Returns |
Agile Thrpe vs. Hexo Corp
Performance |
| Timeline |
| Agile Thrpe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hexo Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agile Thrpe and Hexo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agile Thrpe and Hexo Corp
The main advantage of trading using opposite Agile Thrpe and Hexo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agile Thrpe position performs unexpectedly, Hexo Corp 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 Hexo Corp will offset losses from the drop in Hexo Corp's long position.| Agile Thrpe vs. Assertio Therapeutics | Agile Thrpe vs. Amneal Pharmaceuticals, Class | Agile Thrpe vs. Lifecore Biomedical | Agile Thrpe vs. Alpha Teknova |
| Hexo Corp vs. Aurora Cannabis | Hexo Corp vs. Canopy Growth Corp | Hexo Corp vs. Curaleaf Holdings | Hexo Corp vs. OrganiGram Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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