Correlation Between C21 Investments and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both C21 Investments and Akanda 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 C21 Investments and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C21 Investments and Akanda Corp, you can compare the effects of market volatilities on C21 Investments and Akanda 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 C21 Investments with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of C21 Investments and Akanda Corp.
Diversification Opportunities for C21 Investments and Akanda Corp
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between C21 and Akanda is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding C21 Investments and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and C21 Investments 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 C21 Investments are associated (or correlated) with Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of C21 Investments i.e., C21 Investments and Akanda Corp go up and down completely randomly.
Pair Corralation between C21 Investments and Akanda Corp
Assuming the 90 days horizon C21 Investments is expected to generate 0.75 times more return on investment than Akanda Corp. However, C21 Investments is 1.34 times less risky than Akanda Corp. It trades about 0.02 of its potential returns per unit of risk. Akanda Corp is currently generating about -0.06 per unit of risk. If you would invest 28.00 in C21 Investments on August 27, 2024 and sell it today you would lose (9.00) from holding C21 Investments or give up 32.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
C21 Investments vs. Akanda Corp
Performance |
| Timeline |
| C21 Investments |
| Akanda Corp |
C21 Investments and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C21 Investments and Akanda Corp
The main advantage of trading using opposite C21 Investments and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C21 Investments position performs unexpectedly, Akanda 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| C21 Investments vs. Delta 9 Cannabis | C21 Investments vs. Halo Collective | C21 Investments vs. Willow Biosciences | C21 Investments vs. Entourage Health Corp |
| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |