Correlation Between Akanda Corp and TKO Group
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and TKO Group 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 TKO Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and TKO Group Holdings,, you can compare the effects of market volatilities on Akanda Corp and TKO Group 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 TKO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and TKO Group.
Diversification Opportunities for Akanda Corp and TKO Group
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akanda and TKO is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and TKO Group Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKO Group Holdings, 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 TKO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKO Group Holdings, has no effect on the direction of Akanda Corp i.e., Akanda Corp and TKO Group go up and down completely randomly.
Pair Corralation between Akanda Corp and TKO Group
Given the investment horizon of 90 days Akanda Corp is expected to generate 2.79 times more return on investment than TKO Group. However, Akanda Corp is 2.79 times more volatile than TKO Group Holdings,. It trades about 0.17 of its potential returns per unit of risk. TKO Group Holdings, is currently generating about 0.39 per unit of risk. If you would invest 150.00 in Akanda Corp on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Akanda Corp or generate 16.67% 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. TKO Group Holdings,
Performance |
| Timeline |
| Akanda Corp |
| TKO Group Holdings, |
Akanda Corp and TKO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and TKO Group
The main advantage of trading using opposite Akanda Corp and TKO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, TKO Group 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 TKO Group will offset losses from the drop in TKO Group'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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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