Correlation Between Elixinol Global and Acreage Holdings
Can any of the company-specific risk be diversified away by investing in both Elixinol Global 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 Elixinol Global and Acreage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Acreage Holdings, you can compare the effects of market volatilities on Elixinol Global 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 Elixinol Global with a short position of Acreage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Acreage Holdings.
Diversification Opportunities for Elixinol Global and Acreage Holdings
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elixinol and Acreage is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Acreage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acreage Holdings and Elixinol Global 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 Elixinol Global 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 Elixinol Global i.e., Elixinol Global and Acreage Holdings go up and down completely randomly.
Pair Corralation between Elixinol Global and Acreage Holdings
Assuming the 90 days horizon Elixinol Global is expected to generate 9.35 times more return on investment than Acreage Holdings. However, Elixinol Global is 9.35 times more volatile than Acreage Holdings. It trades about 0.15 of its potential returns per unit of risk. Acreage Holdings is currently generating about -0.03 per unit of risk. If you would invest 0.70 in Elixinol Global on September 14, 2024 and sell it today you would lose (0.20) from holding Elixinol Global or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Elixinol Global vs. Acreage Holdings
Performance |
| Timeline |
| Elixinol Global |
| Acreage Holdings |
Elixinol Global and Acreage Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Acreage Holdings
The main advantage of trading using opposite Elixinol Global and Acreage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global 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.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| Acreage Holdings vs. 4Front Ventures Corp | Acreage Holdings vs. Khiron Life Sciences | Acreage Holdings vs. BellRock Brands | Acreage Holdings vs. Elixinol Global |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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