Correlation Between Akanda Corp and Lion One
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Lion One 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 Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Lion One Metals, you can compare the effects of market volatilities on Akanda Corp and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Lion One.
Diversification Opportunities for Akanda Corp and Lion One
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Akanda and Lion is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Akanda Corp i.e., Akanda Corp and Lion One go up and down completely randomly.
Pair Corralation between Akanda Corp and Lion One
Given the investment horizon of 90 days Akanda Corp is expected to generate 1.75 times more return on investment than Lion One. However, Akanda Corp is 1.75 times more volatile than Lion One Metals. It trades about -0.01 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.3 per unit of risk. If you would invest 170.00 in Akanda Corp on August 29, 2024 and sell it today you would lose (8.00) from holding Akanda Corp or give up 4.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Lion One Metals
Performance |
| Timeline |
| Akanda Corp |
| Lion One Metals |
Akanda Corp and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Lion One
The main advantage of trading using opposite Akanda Corp and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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