Correlation Between Columbia Care and Kaya Holdings
Can any of the company-specific risk be diversified away by investing in both Columbia Care and Kaya 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 Columbia Care and Kaya Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Care and Kaya Holdings, you can compare the effects of market volatilities on Columbia Care and Kaya 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 Columbia Care with a short position of Kaya Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Care and Kaya Holdings.
Diversification Opportunities for Columbia Care and Kaya Holdings
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Columbia and Kaya is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Care and Kaya Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaya Holdings and Columbia Care 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 Columbia Care are associated (or correlated) with Kaya Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaya Holdings has no effect on the direction of Columbia Care i.e., Columbia Care and Kaya Holdings go up and down completely randomly.
Pair Corralation between Columbia Care and Kaya Holdings
If you would invest 4.22 in Kaya Holdings on September 2, 2024 and sell it today you would lose (0.42) from holding Kaya Holdings or give up 9.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Columbia Care vs. Kaya Holdings
Performance |
| Timeline |
| Columbia Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kaya Holdings |
Columbia Care and Kaya Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Care and Kaya Holdings
The main advantage of trading using opposite Columbia Care and Kaya Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Care position performs unexpectedly, Kaya 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 Kaya Holdings will offset losses from the drop in Kaya Holdings' long position.| Columbia Care vs. Green Thumb Industries | Columbia Care vs. AYR Strategies Class | Columbia Care vs. Trulieve Cannabis Corp | Columbia Care vs. Goodness Growth Holdings |
| Kaya Holdings vs. MPX International Corp | Kaya Holdings vs. Grown Rogue International | Kaya Holdings vs. Slang Worldwide | Kaya Holdings vs. Decibel Cannabis |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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