Correlation Between Aleafia Health and Terrascend Corp
Can any of the company-specific risk be diversified away by investing in both Aleafia Health and Terrascend Corp 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 Terrascend Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aleafia Health and Terrascend Corp, you can compare the effects of market volatilities on Aleafia Health and Terrascend Corp 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 Terrascend Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aleafia Health and Terrascend Corp.
Diversification Opportunities for Aleafia Health and Terrascend Corp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aleafia and Terrascend is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aleafia Health and Terrascend Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terrascend Corp 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 Terrascend Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terrascend Corp has no effect on the direction of Aleafia Health i.e., Aleafia Health and Terrascend Corp go up and down completely randomly.
Pair Corralation between Aleafia Health and Terrascend Corp
If you would invest 155.00 in Terrascend Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Terrascend Corp 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. Terrascend Corp
Performance |
| Timeline |
| Aleafia Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Terrascend Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aleafia Health and Terrascend Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aleafia Health and Terrascend Corp
The main advantage of trading using opposite Aleafia Health and Terrascend Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aleafia Health position performs unexpectedly, Terrascend Corp 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 Terrascend Corp will offset losses from the drop in Terrascend Corp'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 |
| Terrascend Corp vs. AYR Strategies Class | Terrascend Corp vs. Verano Holdings Corp | Terrascend Corp vs. Jushi Holdings | Terrascend Corp vs. Green Thumb Industries |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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