Correlation Between Akanda Corp and Stagwell
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Stagwell 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 Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Stagwell, you can compare the effects of market volatilities on Akanda Corp and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Stagwell.
Diversification Opportunities for Akanda Corp and Stagwell
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akanda and Stagwell is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Akanda Corp i.e., Akanda Corp and Stagwell go up and down completely randomly.
Pair Corralation between Akanda Corp and Stagwell
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the Stagwell. In addition to that, Akanda Corp is 1.92 times more volatile than Stagwell. It trades about -0.08 of its total potential returns per unit of risk. Stagwell is currently generating about 0.09 per unit of volatility. If you would invest 694.00 in Stagwell on September 2, 2024 and sell it today you would earn a total of 92.00 from holding Stagwell or generate 13.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Stagwell
Performance |
| Timeline |
| Akanda Corp |
| Stagwell |
Akanda Corp and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Stagwell
The main advantage of trading using opposite Akanda Corp and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| Stagwell vs. ADTRAN Inc | Stagwell vs. Belden Inc | Stagwell vs. ADC Therapeutics SA | Stagwell vs. Comtech Telecommunications Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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