Correlation Between Akanda Corp and Safe
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Safe 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 Safe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Safe and Green, you can compare the effects of market volatilities on Akanda Corp and Safe 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 Safe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Safe.
Diversification Opportunities for Akanda Corp and Safe
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Akanda and Safe is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Safe and Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe and Green 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 Safe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe and Green has no effect on the direction of Akanda Corp i.e., Akanda Corp and Safe go up and down completely randomly.
Pair Corralation between Akanda Corp and Safe
Given the investment horizon of 90 days Akanda Corp is expected to generate 0.69 times more return on investment than Safe. However, Akanda Corp is 1.44 times less risky than Safe. It trades about -0.12 of its potential returns per unit of risk. Safe and Green is currently generating about -0.12 per unit of risk. If you would invest 488.00 in Akanda Corp on September 3, 2024 and sell it today you would lose (298.00) from holding Akanda Corp or give up 61.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Safe and Green
Performance |
| Timeline |
| Akanda Corp |
| Safe and Green |
Akanda Corp and Safe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Safe
The main advantage of trading using opposite Akanda Corp and Safe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Safe 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 Safe will offset losses from the drop in Safe'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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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