Correlation Between Amplify Seymour and Curaleaf Holdings
Can any of the company-specific risk be diversified away by investing in both Amplify Seymour and Curaleaf Holdings 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 Amplify Seymour and Curaleaf Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify Seymour Cannabis and Curaleaf Holdings, you can compare the effects of market volatilities on Amplify Seymour and Curaleaf Holdings 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 Amplify Seymour with a short position of Curaleaf Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Seymour and Curaleaf Holdings.
Diversification Opportunities for Amplify Seymour and Curaleaf Holdings
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amplify and Curaleaf is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Seymour Cannabis and Curaleaf Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curaleaf Holdings and Amplify Seymour 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 Amplify Seymour Cannabis are associated (or correlated) with Curaleaf Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curaleaf Holdings has no effect on the direction of Amplify Seymour i.e., Amplify Seymour and Curaleaf Holdings go up and down completely randomly.
Pair Corralation between Amplify Seymour and Curaleaf Holdings
Given the investment horizon of 90 days Amplify Seymour Cannabis is expected to generate 0.56 times more return on investment than Curaleaf Holdings. However, Amplify Seymour Cannabis is 1.8 times less risky than Curaleaf Holdings. It trades about -0.25 of its potential returns per unit of risk. Curaleaf Holdings is currently generating about -0.16 per unit of risk. If you would invest 472.00 in Amplify Seymour Cannabis on August 24, 2024 and sell it today you would lose (144.00) from holding Amplify Seymour Cannabis or give up 30.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amplify Seymour Cannabis vs. Curaleaf Holdings
Performance |
| Timeline |
| Amplify Seymour Cannabis |
| Curaleaf Holdings |
Amplify Seymour and Curaleaf Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Seymour and Curaleaf Holdings
The main advantage of trading using opposite Amplify Seymour and Curaleaf Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Seymour position performs unexpectedly, Curaleaf Holdings 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 Curaleaf Holdings will offset losses from the drop in Curaleaf Holdings' long position.| Amplify Seymour vs. SPDR Kensho New | Amplify Seymour vs. Global X FinTech | Amplify Seymour vs. iShares Genomics Immunology | Amplify Seymour vs. Aquagold International |
| Curaleaf Holdings vs. Green Cures Botanical | Curaleaf Holdings vs. Cann American Corp | Curaleaf Holdings vs. Rimrock Gold Corp | Curaleaf Holdings vs. Galexxy Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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