Correlation Between Elixinol Global and CordovaCann Corp
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and CordovaCann Corp 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 CordovaCann Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and CordovaCann Corp, you can compare the effects of market volatilities on Elixinol Global and CordovaCann Corp 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 CordovaCann Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and CordovaCann Corp.
Diversification Opportunities for Elixinol Global and CordovaCann Corp
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elixinol and CordovaCann is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and CordovaCann Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CordovaCann Corp 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 CordovaCann Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CordovaCann Corp has no effect on the direction of Elixinol Global i.e., Elixinol Global and CordovaCann Corp go up and down completely randomly.
Pair Corralation between Elixinol Global and CordovaCann Corp
Assuming the 90 days horizon Elixinol Global is expected to generate 5.3 times more return on investment than CordovaCann Corp. However, Elixinol Global is 5.3 times more volatile than CordovaCann Corp. It trades about 0.11 of its potential returns per unit of risk. CordovaCann Corp is currently generating about 0.05 per unit of risk. If you would invest 1.45 in Elixinol Global on September 14, 2024 and sell it today you would lose (0.95) from holding Elixinol Global or give up 65.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Elixinol Global vs. CordovaCann Corp
Performance |
| Timeline |
| Elixinol Global |
| CordovaCann Corp |
Elixinol Global and CordovaCann Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and CordovaCann Corp
The main advantage of trading using opposite Elixinol Global and CordovaCann Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, CordovaCann Corp 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 CordovaCann Corp will offset losses from the drop in CordovaCann Corp's long position.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| CordovaCann Corp vs. 4Front Ventures Corp | CordovaCann Corp vs. Khiron Life Sciences | CordovaCann Corp vs. BellRock Brands | CordovaCann Corp 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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