Correlation Between Elixinol Global and IAnthus Capital
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and IAnthus Capital 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 IAnthus Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and iAnthus Capital Holdings, you can compare the effects of market volatilities on Elixinol Global and IAnthus Capital 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 IAnthus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and IAnthus Capital.
Diversification Opportunities for Elixinol Global and IAnthus Capital
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elixinol and IAnthus is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and iAnthus Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iAnthus Capital 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 IAnthus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iAnthus Capital Holdings has no effect on the direction of Elixinol Global i.e., Elixinol Global and IAnthus Capital go up and down completely randomly.
Pair Corralation between Elixinol Global and IAnthus Capital
Assuming the 90 days horizon Elixinol Global is expected to generate 1.27 times more return on investment than IAnthus Capital. However, Elixinol Global is 1.27 times more volatile than iAnthus Capital Holdings. It trades about 0.27 of its potential returns per unit of risk. iAnthus Capital Holdings is currently generating about 0.17 per unit of risk. If you would invest 1.00 in Elixinol Global on October 21, 2024 and sell it today you would earn a total of 1.13 from holding Elixinol Global or generate 113.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Elixinol Global vs. iAnthus Capital Holdings
Performance |
| Timeline |
| Elixinol Global |
| iAnthus Capital Holdings |
Elixinol Global and IAnthus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and IAnthus Capital
The main advantage of trading using opposite Elixinol Global and IAnthus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, IAnthus Capital 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 IAnthus Capital will offset losses from the drop in IAnthus Capital's long position.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| IAnthus Capital vs. Orchid Ventures | IAnthus Capital vs. TransCanna Holdings | IAnthus Capital vs. BioQuest Corp | IAnthus Capital vs. Verano Holdings 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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