Correlation Between Akanda Corp and Land Securities
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Land Securities 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 Land Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Land Securities Group, you can compare the effects of market volatilities on Akanda Corp and Land Securities 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 Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Land Securities.
Diversification Opportunities for Akanda Corp and Land Securities
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akanda and Land is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Land Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Securities 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 Land Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Securities Group has no effect on the direction of Akanda Corp i.e., Akanda Corp and Land Securities go up and down completely randomly.
Pair Corralation between Akanda Corp and Land Securities
Given the investment horizon of 90 days Akanda Corp is expected to generate 1.28 times more return on investment than Land Securities. However, Akanda Corp is 1.28 times more volatile than Land Securities Group. It trades about 0.21 of its potential returns per unit of risk. Land Securities Group is currently generating about -0.09 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Land Securities Group
Performance |
| Timeline |
| Akanda Corp |
| Land Securities Group |
Akanda Corp and Land Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Land Securities
The main advantage of trading using opposite Akanda Corp and Land Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Land Securities 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 Land Securities will offset losses from the drop in Land Securities' long position.| Akanda Corp vs. Tff Pharmaceuticals | Akanda Corp vs. Eliem Therapeutics | Akanda Corp vs. Inhibrx | Akanda Corp vs. Enliven Therapeutics |
| Land Securities vs. The Coca Cola | Land Securities vs. Sapiens International | Land Securities vs. Q2 Holdings | Land Securities vs. Cadence Design Systems |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |