Correlation Between Elixinol Global and Khiron Life
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and Khiron Life 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 Khiron Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Khiron Life Sciences, you can compare the effects of market volatilities on Elixinol Global and Khiron Life 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 Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Khiron Life.
Diversification Opportunities for Elixinol Global and Khiron Life
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Elixinol and Khiron is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences 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 Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of Elixinol Global i.e., Elixinol Global and Khiron Life go up and down completely randomly.
Pair Corralation between Elixinol Global and Khiron Life
If you would invest 0.22 in Elixinol Global on September 13, 2024 and sell it today you would earn a total of 0.28 from holding Elixinol Global or generate 127.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Elixinol Global vs. Khiron Life Sciences
Performance |
| Timeline |
| Elixinol Global |
| Khiron Life Sciences |
Elixinol Global and Khiron Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Khiron Life
The main advantage of trading using opposite Elixinol Global and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| Khiron Life vs. Blueberries Medical Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. City View Green | Khiron Life vs. Benchmark Botanics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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