Correlation Between Clever Leaves and Khiron Life
Can any of the company-specific risk be diversified away by investing in both Clever Leaves and Khiron Life 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 Khiron Life 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 Khiron Life Sciences, you can compare the effects of market volatilities on Clever Leaves and Khiron Life 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 Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clever Leaves and Khiron Life.
Diversification Opportunities for Clever Leaves and Khiron Life
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Clever and Khiron is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Clever Leaves Holdings and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences 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 Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of Clever Leaves i.e., Clever Leaves and Khiron Life go up and down completely randomly.
Pair Corralation between Clever Leaves and Khiron Life
Given the investment horizon of 90 days Clever Leaves Holdings is expected to generate 1.57 times more return on investment than Khiron Life. However, Clever Leaves is 1.57 times more volatile than Khiron Life Sciences. It trades about 0.18 of its potential returns per unit of risk. Khiron Life Sciences is currently generating about 0.11 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clever Leaves Holdings vs. Khiron Life Sciences
Performance |
| Timeline |
| Clever Leaves Holdings |
| Khiron Life Sciences |
Clever Leaves and Khiron Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clever Leaves and Khiron Life
The main advantage of trading using opposite Clever Leaves and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clever Leaves position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.| Clever Leaves vs. PayPal Holdings | Clever Leaves vs. Nasdaq Inc | Clever Leaves vs. Choice Hotels International | Clever Leaves vs. Microsoft |
| Khiron Life vs. Blueberries Medical Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. City View Green | Khiron Life vs. Benchmark Botanics |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |