Correlation Between Akanda Corp and Big Tree
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Big Tree 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 Akanda Corp and Big Tree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Big Tree Group, you can compare the effects of market volatilities on Akanda Corp and Big Tree 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 Akanda Corp with a short position of Big Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Big Tree.
Diversification Opportunities for Akanda Corp and Big Tree
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akanda and Big is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Big Tree Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Tree Group and Akanda Corp 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 Akanda Corp are associated (or correlated) with Big Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Tree Group has no effect on the direction of Akanda Corp i.e., Akanda Corp and Big Tree go up and down completely randomly.
Pair Corralation between Akanda Corp and Big Tree
If you would invest 153.00 in Akanda Corp on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Akanda Corp or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Akanda Corp vs. Big Tree Group
Performance |
| Timeline |
| Akanda Corp |
| Big Tree Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Akanda Corp and Big Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Big Tree
The main advantage of trading using opposite Akanda Corp and Big Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Big Tree 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 Big Tree will offset losses from the drop in Big Tree's long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| Big Tree vs. Sphere Entertainment Co | Big Tree vs. Awilco Drilling PLC | Big Tree vs. Teleflex Incorporated | Big Tree vs. RadNet Inc |
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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