Correlation Between Clever Leaves and Emergent Health
Can any of the company-specific risk be diversified away by investing in both Clever Leaves and Emergent Health 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 Emergent Health 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 Emergent Health Corp, you can compare the effects of market volatilities on Clever Leaves and Emergent Health 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 Emergent Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clever Leaves and Emergent Health.
Diversification Opportunities for Clever Leaves and Emergent Health
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clever and Emergent is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Clever Leaves Holdings and Emergent Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emergent Health Corp 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 Emergent Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emergent Health Corp has no effect on the direction of Clever Leaves i.e., Clever Leaves and Emergent Health go up and down completely randomly.
Pair Corralation between Clever Leaves and Emergent Health
If you would invest 2.00 in Clever Leaves Holdings on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Clever Leaves Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Clever Leaves Holdings vs. Emergent Health Corp
Performance |
| Timeline |
| Clever Leaves Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Emergent Health Corp |
Clever Leaves and Emergent Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clever Leaves and Emergent Health
The main advantage of trading using opposite Clever Leaves and Emergent Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clever Leaves position performs unexpectedly, Emergent Health 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 Emergent Health will offset losses from the drop in Emergent Health's long position.| Clever Leaves vs. Clever Leaves Holdings | Clever Leaves vs. CannBioRx Life Sciences | Clever Leaves vs. Clene Inc | Clever Leaves vs. CuriosityStream |
| Emergent Health vs. Galexxy Holdings | Emergent Health vs. Integrated Cannabis Solutions | Emergent Health vs. Golden Developing Solutions | Emergent Health vs. Premier Biomedical |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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