Correlation Between Elixinol Global and CuraScientific
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and CuraScientific 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 CuraScientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and CuraScientific, you can compare the effects of market volatilities on Elixinol Global and CuraScientific 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 CuraScientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and CuraScientific.
Diversification Opportunities for Elixinol Global and CuraScientific
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Elixinol and CuraScientific is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and CuraScientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CuraScientific 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 CuraScientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CuraScientific has no effect on the direction of Elixinol Global i.e., Elixinol Global and CuraScientific go up and down completely randomly.
Pair Corralation between Elixinol Global and CuraScientific
If you would invest 0.22 in Elixinol Global on August 25, 2024 and sell it today you would earn a total of 0.10 from holding Elixinol Global or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Elixinol Global vs. CuraScientific
Performance |
| Timeline |
| Elixinol Global |
| CuraScientific |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elixinol Global and CuraScientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and CuraScientific
The main advantage of trading using opposite Elixinol Global and CuraScientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, CuraScientific 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 CuraScientific will offset losses from the drop in CuraScientific's long position.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| CuraScientific vs. ManifestSeven Holdings | CuraScientific vs. Grey Cloak Tech | CuraScientific vs. Pure Harvest Cannabis | CuraScientific vs. Ionic Brands Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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