Correlation Between Akanda Corp and DAVITA
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By analyzing existing cross correlation between Akanda Corp and DAVITA INC 375, you can compare the effects of market volatilities on Akanda Corp and DAVITA 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 DAVITA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and DAVITA.
Diversification Opportunities for Akanda Corp and DAVITA
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akanda and DAVITA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and DAVITA INC 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAVITA INC 375 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 DAVITA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAVITA INC 375 has no effect on the direction of Akanda Corp i.e., Akanda Corp and DAVITA go up and down completely randomly.
Pair Corralation between Akanda Corp and DAVITA
Given the investment horizon of 90 days Akanda Corp is expected to generate 2.06 times more return on investment than DAVITA. However, Akanda Corp is 2.06 times more volatile than DAVITA INC 375. It trades about 0.11 of its potential returns per unit of risk. DAVITA INC 375 is currently generating about -0.19 per unit of risk. If you would invest 154.00 in Akanda Corp on September 5, 2024 and sell it today you would earn a total of 16.00 from holding Akanda Corp or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Akanda Corp vs. DAVITA INC 375
Performance |
| Timeline |
| Akanda Corp |
| DAVITA INC 375 |
Akanda Corp and DAVITA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and DAVITA
The main advantage of trading using opposite Akanda Corp and DAVITA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, DAVITA 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 DAVITA will offset losses from the drop in DAVITA's long position.| Akanda Corp vs. Candel Therapeutics | Akanda Corp vs. Cingulate Warrants | Akanda Corp vs. Unicycive Therapeutics | Akanda Corp vs. Cardio Diagnostics Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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