Correlation Between Akanda Corp and Petros Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Petros Pharmaceuticals 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 Petros Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Petros Pharmaceuticals, you can compare the effects of market volatilities on Akanda Corp and Petros Pharmaceuticals 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 Petros Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Petros Pharmaceuticals.
Diversification Opportunities for Akanda Corp and Petros Pharmaceuticals
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Akanda and Petros is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Petros Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petros Pharmaceuticals 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 Petros Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petros Pharmaceuticals has no effect on the direction of Akanda Corp i.e., Akanda Corp and Petros Pharmaceuticals go up and down completely randomly.
Pair Corralation between Akanda Corp and Petros Pharmaceuticals
Given the investment horizon of 90 days Akanda Corp is expected to generate 4.04 times less return on investment than Petros Pharmaceuticals. But when comparing it to its historical volatility, Akanda Corp is 2.5 times less risky than Petros Pharmaceuticals. It trades about 0.02 of its potential returns per unit of risk. Petros Pharmaceuticals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 41.00 in Petros Pharmaceuticals on October 25, 2024 and sell it today you would lose (6.00) from holding Petros Pharmaceuticals or give up 14.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Petros Pharmaceuticals
Performance |
| Timeline |
| Akanda Corp |
| Petros Pharmaceuticals |
Akanda Corp and Petros Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Petros Pharmaceuticals
The main advantage of trading using opposite Akanda Corp and Petros Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Petros Pharmaceuticals 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 Petros Pharmaceuticals will offset losses from the drop in Petros Pharmaceuticals' long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| Petros Pharmaceuticals vs. Sunshine Biopharma | Petros Pharmaceuticals vs. Sonoma Pharmaceuticals | Petros Pharmaceuticals vs. Alpha Teknova | Petros Pharmaceuticals vs. Evoke Pharma |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |