Correlation Between Elixinol Global and Medipharm Labs
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and Medipharm Labs 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 Medipharm Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Medipharm Labs Corp, you can compare the effects of market volatilities on Elixinol Global and Medipharm Labs 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 Medipharm Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Medipharm Labs.
Diversification Opportunities for Elixinol Global and Medipharm Labs
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elixinol and Medipharm is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Medipharm Labs Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medipharm Labs 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 Medipharm Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medipharm Labs Corp has no effect on the direction of Elixinol Global i.e., Elixinol Global and Medipharm Labs go up and down completely randomly.
Pair Corralation between Elixinol Global and Medipharm Labs
Assuming the 90 days horizon Elixinol Global is expected to generate 46.24 times more return on investment than Medipharm Labs. However, Elixinol Global is 46.24 times more volatile than Medipharm Labs Corp. It trades about 0.28 of its potential returns per unit of risk. Medipharm Labs Corp is currently generating about -0.04 per unit of risk. 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 Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Elixinol Global vs. Medipharm Labs Corp
Performance |
| Timeline |
| Elixinol Global |
| Medipharm Labs Corp |
Elixinol Global and Medipharm Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Medipharm Labs
The main advantage of trading using opposite Elixinol Global and Medipharm Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, Medipharm Labs 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 Medipharm Labs will offset losses from the drop in Medipharm Labs' long position.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| Medipharm Labs vs. Pharmacielo | Medipharm Labs vs. Blueberries Medical Corp | Medipharm Labs vs. Flora Growth Corp | Medipharm Labs vs. Stem Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |