Correlation Between Avicanna and Herborium
Can any of the company-specific risk be diversified away by investing in both Avicanna and Herborium 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 Avicanna and Herborium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avicanna and Herborium Group, you can compare the effects of market volatilities on Avicanna and Herborium 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 Avicanna with a short position of Herborium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avicanna and Herborium.
Diversification Opportunities for Avicanna and Herborium
Good diversification
The 3 months correlation between Avicanna and Herborium is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Avicanna and Herborium Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herborium Group and Avicanna 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 Avicanna are associated (or correlated) with Herborium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herborium Group has no effect on the direction of Avicanna i.e., Avicanna and Herborium go up and down completely randomly.
Pair Corralation between Avicanna and Herborium
If you would invest 23.00 in Avicanna on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Avicanna or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Avicanna vs. Herborium Group
Performance |
| Timeline |
| Avicanna |
| Herborium Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Avicanna and Herborium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avicanna and Herborium
The main advantage of trading using opposite Avicanna and Herborium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avicanna position performs unexpectedly, Herborium 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 Herborium will offset losses from the drop in Herborium's long position.| Avicanna vs. Pharmacielo | Avicanna vs. Khiron Life Sciences | Avicanna vs. Flower One Holdings | Avicanna vs. Cansortium |
| Herborium vs. Cann American Corp | Herborium vs. GelStat Corp | Herborium vs. Green Cures Botanical | Herborium vs. Nutranomics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |