Correlation Between Curaleaf Holdings and Hexo Corp
Can any of the company-specific risk be diversified away by investing in both Curaleaf Holdings and Hexo Corp 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 Curaleaf Holdings and Hexo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curaleaf Holdings and Hexo Corp, you can compare the effects of market volatilities on Curaleaf Holdings and Hexo Corp 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 Curaleaf Holdings with a short position of Hexo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curaleaf Holdings and Hexo Corp.
Diversification Opportunities for Curaleaf Holdings and Hexo Corp
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Curaleaf and Hexo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Curaleaf Holdings and Hexo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexo Corp and Curaleaf Holdings 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 Curaleaf Holdings are associated (or correlated) with Hexo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexo Corp has no effect on the direction of Curaleaf Holdings i.e., Curaleaf Holdings and Hexo Corp go up and down completely randomly.
Pair Corralation between Curaleaf Holdings and Hexo Corp
If you would invest 71.00 in Hexo Corp on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Hexo Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Curaleaf Holdings vs. Hexo Corp
Performance |
| Timeline |
| Curaleaf Holdings |
| Hexo Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Curaleaf Holdings and Hexo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curaleaf Holdings and Hexo Corp
The main advantage of trading using opposite Curaleaf Holdings and Hexo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curaleaf Holdings position performs unexpectedly, Hexo Corp 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 Hexo Corp will offset losses from the drop in Hexo Corp's long position.| Curaleaf Holdings vs. Holloman Energy Corp | Curaleaf Holdings vs. cbdMD Inc | Curaleaf Holdings vs. Evolus Inc | Curaleaf Holdings vs. CV Sciences |
| Hexo Corp vs. Aurora Cannabis | Hexo Corp vs. Canopy Growth Corp | Hexo Corp vs. Curaleaf Holdings | Hexo Corp vs. OrganiGram 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |