Correlation Between Akanda Corp and Drive Shack
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Drive Shack 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 Drive Shack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Drive Shack, you can compare the effects of market volatilities on Akanda Corp and Drive Shack 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 Drive Shack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Drive Shack.
Diversification Opportunities for Akanda Corp and Drive Shack
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Akanda and Drive is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Drive Shack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Drive Shack 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 Drive Shack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Drive Shack has no effect on the direction of Akanda Corp i.e., Akanda Corp and Drive Shack go up and down completely randomly.
Pair Corralation between Akanda Corp and Drive Shack
If you would invest 40.00 in Drive Shack on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Drive Shack or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Akanda Corp vs. Drive Shack
Performance |
| Timeline |
| Akanda Corp |
| Drive Shack |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Akanda Corp and Drive Shack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Drive Shack
The main advantage of trading using opposite Akanda Corp and Drive Shack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Drive Shack 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 Drive Shack will offset losses from the drop in Drive Shack's long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| Drive Shack vs. Mangazeya Mining | Drive Shack vs. Aquestive Therapeutics | Drive Shack vs. Akanda Corp | Drive Shack vs. Summit Materials |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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