Correlation Between Akanda Corp and NATIONAL
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By analyzing existing cross correlation between Akanda Corp and NATIONAL RURAL UTILS, you can compare the effects of market volatilities on Akanda Corp and NATIONAL 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 NATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and NATIONAL.
Diversification Opportunities for Akanda Corp and NATIONAL
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Akanda and NATIONAL is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and NATIONAL RURAL UTILS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL RURAL UTILS 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 NATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL RURAL UTILS has no effect on the direction of Akanda Corp i.e., Akanda Corp and NATIONAL go up and down completely randomly.
Pair Corralation between Akanda Corp and NATIONAL
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the NATIONAL. In addition to that, Akanda Corp is 5.95 times more volatile than NATIONAL RURAL UTILS. It trades about -0.01 of its total potential returns per unit of risk. NATIONAL RURAL UTILS is currently generating about 0.07 per unit of volatility. If you would invest 8,335 in NATIONAL RURAL UTILS on August 28, 2024 and sell it today you would earn a total of 89.00 from holding NATIONAL RURAL UTILS or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 81.82% |
| Values | Daily Returns |
Akanda Corp vs. NATIONAL RURAL UTILS
Performance |
| Timeline |
| Akanda Corp |
| NATIONAL RURAL UTILS |
Akanda Corp and NATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and NATIONAL
The main advantage of trading using opposite Akanda Corp and NATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, NATIONAL 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 NATIONAL will offset losses from the drop in NATIONAL'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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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