Correlation Between Akanda Corp and Charlottes Web
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Charlottes Web 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 Charlottes Web into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Charlottes Web Holdings, you can compare the effects of market volatilities on Akanda Corp and Charlottes Web 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 Charlottes Web. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Charlottes Web.
Diversification Opportunities for Akanda Corp and Charlottes Web
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Akanda and Charlottes is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Charlottes Web Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charlottes Web Holdings 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 Charlottes Web. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charlottes Web Holdings has no effect on the direction of Akanda Corp i.e., Akanda Corp and Charlottes Web go up and down completely randomly.
Pair Corralation between Akanda Corp and Charlottes Web
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the Charlottes Web. In addition to that, Akanda Corp is 1.76 times more volatile than Charlottes Web Holdings. It trades about -0.08 of its total potential returns per unit of risk. Charlottes Web Holdings is currently generating about -0.01 per unit of volatility. If you would invest 21.00 in Charlottes Web Holdings on September 2, 2024 and sell it today you would lose (8.00) from holding Charlottes Web Holdings or give up 38.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Charlottes Web Holdings
Performance |
| Timeline |
| Akanda Corp |
| Charlottes Web Holdings |
Akanda Corp and Charlottes Web Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Charlottes Web
The main advantage of trading using opposite Akanda Corp and Charlottes Web positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Charlottes Web 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 Charlottes Web will offset losses from the drop in Charlottes Web's long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| Charlottes Web vs. Verano Holdings Corp | Charlottes Web vs. Cresco Labs | Charlottes Web vs. AYR Strategies Class | Charlottes Web vs. Green Thumb Industries |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |