Correlation Between Akanda Corp and LENSAR
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and LENSAR 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 LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and LENSAR Inc, you can compare the effects of market volatilities on Akanda Corp and LENSAR 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 LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and LENSAR.
Diversification Opportunities for Akanda Corp and LENSAR
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akanda and LENSAR is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc 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 LENSAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LENSAR Inc has no effect on the direction of Akanda Corp i.e., Akanda Corp and LENSAR go up and down completely randomly.
Pair Corralation between Akanda Corp and LENSAR
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the LENSAR. But the stock apears to be less risky and, when comparing its historical volatility, Akanda Corp is 1.08 times less risky than LENSAR. The stock trades about -0.34 of its potential returns per unit of risk. The LENSAR Inc is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 533.00 in LENSAR Inc on August 23, 2024 and sell it today you would earn a total of 212.00 from holding LENSAR Inc or generate 39.77% 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. LENSAR Inc
Performance |
| Timeline |
| Akanda Corp |
| LENSAR Inc |
Akanda Corp and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and LENSAR
The main advantage of trading using opposite Akanda Corp and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, LENSAR 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 LENSAR will offset losses from the drop in LENSAR's long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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.
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