Correlation Between Clever Leaves and Biofrontera
Can any of the company-specific risk be diversified away by investing in both Clever Leaves and Biofrontera 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 Clever Leaves and Biofrontera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clever Leaves Holdings and Biofrontera, you can compare the effects of market volatilities on Clever Leaves and Biofrontera 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 Clever Leaves with a short position of Biofrontera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clever Leaves and Biofrontera.
Diversification Opportunities for Clever Leaves and Biofrontera
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clever and Biofrontera is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Clever Leaves Holdings and Biofrontera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofrontera and Clever Leaves 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 Clever Leaves Holdings are associated (or correlated) with Biofrontera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofrontera has no effect on the direction of Clever Leaves i.e., Clever Leaves and Biofrontera go up and down completely randomly.
Pair Corralation between Clever Leaves and Biofrontera
Given the investment horizon of 90 days Clever Leaves Holdings is expected to generate 26.57 times more return on investment than Biofrontera. However, Clever Leaves is 26.57 times more volatile than Biofrontera. It trades about 0.18 of its potential returns per unit of risk. Biofrontera is currently generating about 0.03 per unit of risk. If you would invest 320.00 in Clever Leaves Holdings on August 29, 2024 and sell it today you would lose (220.00) from holding Clever Leaves Holdings or give up 68.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clever Leaves Holdings vs. Biofrontera
Performance |
| Timeline |
| Clever Leaves Holdings |
| Biofrontera |
Clever Leaves and Biofrontera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clever Leaves and Biofrontera
The main advantage of trading using opposite Clever Leaves and Biofrontera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clever Leaves position performs unexpectedly, Biofrontera 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 Biofrontera will offset losses from the drop in Biofrontera's long position.| Clever Leaves vs. PayPal Holdings | Clever Leaves vs. Nasdaq Inc | Clever Leaves vs. Choice Hotels International | Clever Leaves vs. Microsoft |
| Biofrontera vs. Shuttle Pharmaceuticals | Biofrontera vs. Akanda Corp | Biofrontera vs. China Pharma Holdings | Biofrontera vs. Sunshine Biopharma Warrant |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |