Correlation Between Elixinol Global and Slang Worldwide
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and Slang Worldwide 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 Slang Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Slang Worldwide, you can compare the effects of market volatilities on Elixinol Global and Slang Worldwide 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 Slang Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Slang Worldwide.
Diversification Opportunities for Elixinol Global and Slang Worldwide
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elixinol and Slang is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Slang Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slang Worldwide 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 Slang Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slang Worldwide has no effect on the direction of Elixinol Global i.e., Elixinol Global and Slang Worldwide go up and down completely randomly.
Pair Corralation between Elixinol Global and Slang Worldwide
If you would invest 3.73 in Elixinol Global on November 27, 2024 and sell it today you would lose (1.87) from holding Elixinol Global or give up 50.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Elixinol Global vs. Slang Worldwide
Performance |
| Timeline |
| Elixinol Global |
| Slang Worldwide |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Elixinol Global and Slang Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Slang Worldwide
The main advantage of trading using opposite Elixinol Global and Slang Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, Slang Worldwide 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 Slang Worldwide will offset losses from the drop in Slang Worldwide's long position.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| Slang Worldwide vs. Orchid Ventures | Slang Worldwide vs. TransCanna Holdings | Slang Worldwide vs. BioQuest Corp | Slang Worldwide vs. Goodness Growth 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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