Correlation Between Aleafia Health and Columbia Care
Can any of the company-specific risk be diversified away by investing in both Aleafia Health and Columbia Care 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 Aleafia Health and Columbia Care into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aleafia Health and Columbia Care, you can compare the effects of market volatilities on Aleafia Health and Columbia Care 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 Aleafia Health with a short position of Columbia Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aleafia Health and Columbia Care.
Diversification Opportunities for Aleafia Health and Columbia Care
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aleafia and Columbia is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aleafia Health and Columbia Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Care and Aleafia Health 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 Aleafia Health are associated (or correlated) with Columbia Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Care has no effect on the direction of Aleafia Health i.e., Aleafia Health and Columbia Care go up and down completely randomly.
Pair Corralation between Aleafia Health and Columbia Care
If you would invest 46.00 in Columbia Care on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Columbia Care or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aleafia Health vs. Columbia Care
Performance |
| Timeline |
| Aleafia Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Columbia Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aleafia Health and Columbia Care Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aleafia Health and Columbia Care
The main advantage of trading using opposite Aleafia Health and Columbia Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aleafia Health position performs unexpectedly, Columbia Care 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 Columbia Care will offset losses from the drop in Columbia Care's long position.| Aleafia Health vs. Acreage Holdings | Aleafia Health vs. Verano Holdings Corp | Aleafia Health vs. Pharmagreen Biotech | Aleafia Health vs. Mydecine Innovations Group |
| Columbia Care vs. Green Thumb Industries | Columbia Care vs. AYR Strategies Class | Columbia Care vs. Trulieve Cannabis Corp | Columbia Care vs. Goodness Growth 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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