Correlation Between Curaleaf Holdings and Shuttle Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Curaleaf Holdings and Shuttle Pharmaceuticals 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 Shuttle Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curaleaf Holdings and Shuttle Pharmaceuticals, you can compare the effects of market volatilities on Curaleaf Holdings and Shuttle Pharmaceuticals 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 Shuttle Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curaleaf Holdings and Shuttle Pharmaceuticals.
Diversification Opportunities for Curaleaf Holdings and Shuttle Pharmaceuticals
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Curaleaf and Shuttle is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Curaleaf Holdings and Shuttle Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuttle Pharmaceuticals 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 Shuttle Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuttle Pharmaceuticals has no effect on the direction of Curaleaf Holdings i.e., Curaleaf Holdings and Shuttle Pharmaceuticals go up and down completely randomly.
Pair Corralation between Curaleaf Holdings and Shuttle Pharmaceuticals
Assuming the 90 days horizon Curaleaf Holdings is expected to generate 0.84 times more return on investment than Shuttle Pharmaceuticals. However, Curaleaf Holdings is 1.19 times less risky than Shuttle Pharmaceuticals. It trades about -0.02 of its potential returns per unit of risk. Shuttle Pharmaceuticals is currently generating about -0.08 per unit of risk. If you would invest 757.00 in Curaleaf Holdings on August 24, 2024 and sell it today you would lose (547.00) from holding Curaleaf Holdings or give up 72.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curaleaf Holdings vs. Shuttle Pharmaceuticals
Performance |
| Timeline |
| Curaleaf Holdings |
| Shuttle Pharmaceuticals |
Curaleaf Holdings and Shuttle Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curaleaf Holdings and Shuttle Pharmaceuticals
The main advantage of trading using opposite Curaleaf Holdings and Shuttle Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curaleaf Holdings position performs unexpectedly, Shuttle Pharmaceuticals 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 Shuttle Pharmaceuticals will offset losses from the drop in Shuttle Pharmaceuticals' long position.| Curaleaf Holdings vs. Green Cures Botanical | Curaleaf Holdings vs. Rimrock Gold Corp | Curaleaf Holdings vs. Galexxy Holdings | Curaleaf Holdings vs. Indoor Harvest Corp |
| Shuttle Pharmaceuticals vs. Lifecore Biomedical | Shuttle Pharmaceuticals vs. Catalent | Shuttle Pharmaceuticals vs. Tilray Inc | Shuttle Pharmaceuticals vs. Organogenesis 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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