Correlation Between CanaQuest Medical and Acreage Holdings
Can any of the company-specific risk be diversified away by investing in both CanaQuest Medical and Acreage Holdings 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 CanaQuest Medical and Acreage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanaQuest Medical Corp and Acreage Holdings, you can compare the effects of market volatilities on CanaQuest Medical and Acreage Holdings 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 CanaQuest Medical with a short position of Acreage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanaQuest Medical and Acreage Holdings.
Diversification Opportunities for CanaQuest Medical and Acreage Holdings
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CanaQuest and Acreage is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding CanaQuest Medical Corp and Acreage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acreage Holdings and CanaQuest Medical 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 CanaQuest Medical Corp are associated (or correlated) with Acreage Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acreage Holdings has no effect on the direction of CanaQuest Medical i.e., CanaQuest Medical and Acreage Holdings go up and down completely randomly.
Pair Corralation between CanaQuest Medical and Acreage Holdings
Assuming the 90 days horizon CanaQuest Medical Corp is expected to under-perform the Acreage Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, CanaQuest Medical Corp is 1.33 times less risky than Acreage Holdings. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Acreage Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Acreage Holdings on September 1, 2024 and sell it today you would lose (6.00) from holding Acreage Holdings or give up 31.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanaQuest Medical Corp vs. Acreage Holdings
Performance |
| Timeline |
| CanaQuest Medical Corp |
| Acreage Holdings |
CanaQuest Medical and Acreage Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanaQuest Medical and Acreage Holdings
The main advantage of trading using opposite CanaQuest Medical and Acreage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanaQuest Medical position performs unexpectedly, Acreage Holdings 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 Acreage Holdings will offset losses from the drop in Acreage Holdings' long position.| CanaQuest Medical vs. Holloman Energy Corp | CanaQuest Medical vs. cbdMD Inc | CanaQuest Medical vs. Evolus Inc | CanaQuest Medical vs. CV Sciences |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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