Correlation Between Caseys General and Leafly Holdings
Can any of the company-specific risk be diversified away by investing in both Caseys General and Leafly 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 Caseys General and Leafly Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and Leafly Holdings, you can compare the effects of market volatilities on Caseys General and Leafly 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 Caseys General with a short position of Leafly Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and Leafly Holdings.
Diversification Opportunities for Caseys General and Leafly Holdings
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caseys and Leafly is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and Leafly Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafly Holdings and Caseys General 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 Caseys General Stores are associated (or correlated) with Leafly Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafly Holdings has no effect on the direction of Caseys General i.e., Caseys General and Leafly Holdings go up and down completely randomly.
Pair Corralation between Caseys General and Leafly Holdings
Given the investment horizon of 90 days Caseys General Stores is expected to generate 0.29 times more return on investment than Leafly Holdings. However, Caseys General Stores is 3.48 times less risky than Leafly Holdings. It trades about 0.17 of its potential returns per unit of risk. Leafly Holdings is currently generating about -0.03 per unit of risk. If you would invest 35,447 in Caseys General Stores on August 31, 2024 and sell it today you would earn a total of 6,651 from holding Caseys General Stores or generate 18.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caseys General Stores vs. Leafly Holdings
Performance |
| Timeline |
| Caseys General Stores |
| Leafly Holdings |
Caseys General and Leafly Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and Leafly Holdings
The main advantage of trading using opposite Caseys General and Leafly Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, Leafly 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 Leafly Holdings will offset losses from the drop in Leafly Holdings' long position.| Caseys General vs. Leslies | Caseys General vs. Sally Beauty Holdings | Caseys General vs. ODP Corp | Caseys General vs. 1 800 FLOWERSCOM |
| Leafly Holdings vs. Kiaro Holdings Corp | Leafly Holdings vs. Allstar Health Brands | Leafly Holdings vs. China Jo Jo Drugstores |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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