Correlation Between Akanda Corp and Guardion Health
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Guardion Health 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 Guardion Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Guardion Health Sciences, you can compare the effects of market volatilities on Akanda Corp and Guardion Health 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 Guardion Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Guardion Health.
Diversification Opportunities for Akanda Corp and Guardion Health
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akanda and Guardion is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Guardion Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardion Health Sciences 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 Guardion Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardion Health Sciences has no effect on the direction of Akanda Corp i.e., Akanda Corp and Guardion Health go up and down completely randomly.
Pair Corralation between Akanda Corp and Guardion Health
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the Guardion Health. In addition to that, Akanda Corp is 1.23 times more volatile than Guardion Health Sciences. It trades about -0.09 of its total potential returns per unit of risk. Guardion Health Sciences is currently generating about 0.07 per unit of volatility. If you would invest 191.00 in Guardion Health Sciences on August 24, 2024 and sell it today you would earn a total of 138.00 from holding Guardion Health Sciences or generate 72.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.4% |
| Values | Daily Returns |
Akanda Corp vs. Guardion Health Sciences
Performance |
| Timeline |
| Akanda Corp |
| Guardion Health Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Akanda Corp and Guardion Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Guardion Health
The main advantage of trading using opposite Akanda Corp and Guardion Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Guardion Health 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 Guardion Health will offset losses from the drop in Guardion Health's long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| Guardion Health vs. Biofrontera | Guardion Health vs. Shuttle Pharmaceuticals | Guardion Health vs. Akanda Corp | Guardion Health vs. China Pharma 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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