Correlation Between Clever Leaves and CuriosityStream
Can any of the company-specific risk be diversified away by investing in both Clever Leaves and CuriosityStream 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 CuriosityStream 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 CuriosityStream, you can compare the effects of market volatilities on Clever Leaves and CuriosityStream 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 CuriosityStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clever Leaves and CuriosityStream.
Diversification Opportunities for Clever Leaves and CuriosityStream
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Clever and CuriosityStream is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Clever Leaves Holdings and CuriosityStream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CuriosityStream 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 CuriosityStream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CuriosityStream has no effect on the direction of Clever Leaves i.e., Clever Leaves and CuriosityStream go up and down completely randomly.
Pair Corralation between Clever Leaves and CuriosityStream
Given the investment horizon of 90 days Clever Leaves Holdings is expected to generate 8.67 times more return on investment than CuriosityStream. However, Clever Leaves is 8.67 times more volatile than CuriosityStream. It trades about 0.21 of its potential returns per unit of risk. CuriosityStream is currently generating about 0.08 per unit of risk. If you would invest 0.01 in Clever Leaves Holdings on September 1, 2024 and sell it today you would earn a total of 99.99 from holding Clever Leaves Holdings or generate 999900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Clever Leaves Holdings vs. CuriosityStream
Performance |
| Timeline |
| Clever Leaves Holdings |
| CuriosityStream |
Clever Leaves and CuriosityStream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clever Leaves and CuriosityStream
The main advantage of trading using opposite Clever Leaves and CuriosityStream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clever Leaves position performs unexpectedly, CuriosityStream 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 CuriosityStream will offset losses from the drop in CuriosityStream's long position.| Clever Leaves vs. Flora Growth Corp | Clever Leaves vs. AgriFORCE Growing Systems | Clever Leaves vs. Greenlane Holdings |
| CuriosityStream vs. Eos Energy Enterprises | CuriosityStream vs. CannBioRx Life Sciences | CuriosityStream vs. Advantage Solutions |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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