Correlation Between Delta 9 and Aleafia Health
Can any of the company-specific risk be diversified away by investing in both Delta 9 and Aleafia Health 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 Delta 9 and Aleafia Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta 9 Cannabis and Aleafia Health, you can compare the effects of market volatilities on Delta 9 and Aleafia Health 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 Delta 9 with a short position of Aleafia Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta 9 and Aleafia Health.
Diversification Opportunities for Delta 9 and Aleafia Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delta and Aleafia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delta 9 Cannabis and Aleafia Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aleafia Health and Delta 9 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 Delta 9 Cannabis are associated (or correlated) with Aleafia Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aleafia Health has no effect on the direction of Delta 9 i.e., Delta 9 and Aleafia Health go up and down completely randomly.
Pair Corralation between Delta 9 and Aleafia Health
Assuming the 90 days horizon Delta 9 Cannabis is expected to generate 236.32 times more return on investment than Aleafia Health. However, Delta 9 is 236.32 times more volatile than Aleafia Health. It trades about 0.01 of its potential returns per unit of risk. Aleafia Health is currently generating about 0.08 per unit of risk. If you would invest 2.40 in Delta 9 Cannabis on September 4, 2024 and sell it today you would lose (1.70) from holding Delta 9 Cannabis or give up 70.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 63.82% |
| Values | Daily Returns |
Delta 9 Cannabis vs. Aleafia Health
Performance |
| Timeline |
| Delta 9 Cannabis |
| Aleafia Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delta 9 and Aleafia Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta 9 and Aleafia Health
The main advantage of trading using opposite Delta 9 and Aleafia Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta 9 position performs unexpectedly, Aleafia Health 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 Aleafia Health will offset losses from the drop in Aleafia Health's long position.| Delta 9 vs. Benchmark Botanics | Delta 9 vs. Speakeasy Cannabis Club | Delta 9 vs. City View Green | Delta 9 vs. BC Craft Supply |
| Aleafia Health vs. Acreage Holdings | Aleafia Health vs. Verano Holdings Corp | Aleafia Health vs. Pharmagreen Biotech | Aleafia Health vs. Mydecine Innovations Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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