Correlation Between Elixinol Global and Pure Harvest
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and Pure Harvest 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 Pure Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Pure Harvest Cannabis, you can compare the effects of market volatilities on Elixinol Global and Pure Harvest 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 Pure Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Pure Harvest.
Diversification Opportunities for Elixinol Global and Pure Harvest
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elixinol and Pure is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Pure Harvest Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Harvest Cannabis 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 Pure Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Harvest Cannabis has no effect on the direction of Elixinol Global i.e., Elixinol Global and Pure Harvest go up and down completely randomly.
Pair Corralation between Elixinol Global and Pure Harvest
Assuming the 90 days horizon Elixinol Global is expected to generate 7.48 times more return on investment than Pure Harvest. However, Elixinol Global is 7.48 times more volatile than Pure Harvest Cannabis. It trades about 0.28 of its potential returns per unit of risk. Pure Harvest Cannabis is currently generating about 0.24 per unit of risk. If you would invest 0.22 in Elixinol Global on September 14, 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 | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Elixinol Global vs. Pure Harvest Cannabis
Performance |
| Timeline |
| Elixinol Global |
| Pure Harvest Cannabis |
Elixinol Global and Pure Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Pure Harvest
The main advantage of trading using opposite Elixinol Global and Pure Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, Pure Harvest 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 Pure Harvest will offset losses from the drop in Pure Harvest's long position.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| Pure Harvest vs. Benchmark Botanics | Pure Harvest vs. Speakeasy Cannabis Club | Pure Harvest vs. City View Green | Pure Harvest vs. BC Craft Supply |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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