Correlation Between Delivra Health and Acreage Holdings
Can any of the company-specific risk be diversified away by investing in both Delivra Health and Acreage 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 Delivra Health and Acreage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delivra Health Brands and Acreage Holdings, you can compare the effects of market volatilities on Delivra Health and Acreage 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 Delivra Health with a short position of Acreage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delivra Health and Acreage Holdings.
Diversification Opportunities for Delivra Health and Acreage Holdings
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Delivra and Acreage is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Delivra Health Brands and Acreage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acreage Holdings and Delivra Health 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 Delivra Health Brands are associated (or correlated) with Acreage Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acreage Holdings has no effect on the direction of Delivra Health i.e., Delivra Health and Acreage Holdings go up and down completely randomly.
Pair Corralation between Delivra Health and Acreage Holdings
Assuming the 90 days horizon Delivra Health Brands is expected to generate 0.9 times more return on investment than Acreage Holdings. However, Delivra Health Brands is 1.11 times less risky than Acreage Holdings. It trades about 0.06 of its potential returns per unit of risk. Acreage Holdings is currently generating about 0.04 per unit of risk. If you would invest 1.25 in Delivra Health Brands on August 26, 2024 and sell it today you would earn a total of 0.15 from holding Delivra Health Brands or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delivra Health Brands vs. Acreage Holdings
Performance |
| Timeline |
| Delivra Health Brands |
| Acreage Holdings |
Delivra Health and Acreage Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delivra Health and Acreage Holdings
The main advantage of trading using opposite Delivra Health and Acreage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delivra Health position performs unexpectedly, Acreage 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 Acreage Holdings will offset losses from the drop in Acreage Holdings' long position.| Delivra Health vs. Green Cures Botanical | Delivra Health vs. Galexxy Holdings | Delivra Health vs. Indoor Harvest Corp | Delivra Health vs. Speakeasy Cannabis Club |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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