Correlation Between Akanda Corp and Entravision Communications
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Entravision Communications 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 Entravision Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Entravision Communications, you can compare the effects of market volatilities on Akanda Corp and Entravision Communications 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 Entravision Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Entravision Communications.
Diversification Opportunities for Akanda Corp and Entravision Communications
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akanda and Entravision is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Entravision Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entravision Communications 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 Entravision Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entravision Communications has no effect on the direction of Akanda Corp i.e., Akanda Corp and Entravision Communications go up and down completely randomly.
Pair Corralation between Akanda Corp and Entravision Communications
Given the investment horizon of 90 days Akanda Corp is expected to generate 1.4 times more return on investment than Entravision Communications. However, Akanda Corp is 1.4 times more volatile than Entravision Communications. It trades about 0.21 of its potential returns per unit of risk. Entravision Communications is currently generating about 0.08 per unit of risk. If you would invest 144.00 in Akanda Corp on September 1, 2024 and sell it today you would earn a total of 31.00 from holding Akanda Corp or generate 21.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Entravision Communications
Performance |
| Timeline |
| Akanda Corp |
| Entravision Communications |
Akanda Corp and Entravision Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Entravision Communications
The main advantage of trading using opposite Akanda Corp and Entravision Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Entravision Communications 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 Entravision Communications will offset losses from the drop in Entravision Communications' long position.| Akanda Corp vs. Tff Pharmaceuticals | Akanda Corp vs. Eliem Therapeutics | Akanda Corp vs. Inhibrx | Akanda Corp vs. Enliven Therapeutics |
| Entravision Communications vs. Marchex | Entravision Communications vs. Direct Digital Holdings | Entravision Communications vs. Cimpress NV | Entravision Communications vs. Townsquare Media |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |