Correlation Between Canopy Growth and Agile Thrpe
Can any of the company-specific risk be diversified away by investing in both Canopy Growth and Agile Thrpe 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 Canopy Growth and Agile Thrpe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canopy Growth Corp and Agile Thrpe, you can compare the effects of market volatilities on Canopy Growth and Agile Thrpe 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 Canopy Growth with a short position of Agile Thrpe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canopy Growth and Agile Thrpe.
Diversification Opportunities for Canopy Growth and Agile Thrpe
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canopy and Agile is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Canopy Growth Corp and Agile Thrpe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agile Thrpe and Canopy Growth 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 Canopy Growth Corp are associated (or correlated) with Agile Thrpe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agile Thrpe has no effect on the direction of Canopy Growth i.e., Canopy Growth and Agile Thrpe go up and down completely randomly.
Pair Corralation between Canopy Growth and Agile Thrpe
Considering the 90-day investment horizon Canopy Growth Corp is expected to generate 1.79 times more return on investment than Agile Thrpe. However, Canopy Growth is 1.79 times more volatile than Agile Thrpe. It trades about 0.0 of its potential returns per unit of risk. Agile Thrpe is currently generating about -0.13 per unit of risk. If you would invest 2,090 in Canopy Growth Corp on September 14, 2024 and sell it today you would lose (1,774) from holding Canopy Growth Corp or give up 84.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 29.15% |
| Values | Daily Returns |
Canopy Growth Corp vs. Agile Thrpe
Performance |
| Timeline |
| Canopy Growth Corp |
| Agile Thrpe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Canopy Growth and Agile Thrpe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canopy Growth and Agile Thrpe
The main advantage of trading using opposite Canopy Growth and Agile Thrpe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canopy Growth position performs unexpectedly, Agile Thrpe 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 Agile Thrpe will offset losses from the drop in Agile Thrpe's long position.| Canopy Growth vs. Micron Technology | Canopy Growth vs. Sweetgreen | Canopy Growth vs. Ark Restaurants Corp | Canopy Growth vs. STMicroelectronics NV ADR |
| Agile Thrpe vs. Assertio Therapeutics | Agile Thrpe vs. Amneal Pharmaceuticals, Class | Agile Thrpe vs. Lifecore Biomedical | Agile Thrpe vs. Alpha Teknova |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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