Correlation Between Evolus and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Evolus and Akanda 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 Evolus and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolus Inc and Akanda Corp, you can compare the effects of market volatilities on Evolus and Akanda 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 Evolus with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolus and Akanda Corp.
Diversification Opportunities for Evolus and Akanda Corp
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evolus and Akanda is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Evolus Inc and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and Evolus 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 Evolus Inc are associated (or correlated) with Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of Evolus i.e., Evolus and Akanda Corp go up and down completely randomly.
Pair Corralation between Evolus and Akanda Corp
Given the investment horizon of 90 days Evolus Inc is expected to under-perform the Akanda Corp. But the stock apears to be less risky and, when comparing its historical volatility, Evolus Inc is 1.13 times less risky than Akanda Corp. The stock trades about -0.26 of its potential returns per unit of risk. The Akanda Corp is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 170.00 in Akanda Corp on August 27, 2024 and sell it today you would lose (34.00) from holding Akanda Corp or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolus Inc vs. Akanda Corp
Performance |
| Timeline |
| Evolus Inc |
| Akanda Corp |
Evolus and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolus and Akanda Corp
The main advantage of trading using opposite Evolus and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolus position performs unexpectedly, Akanda 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| Evolus vs. Collegium Pharmaceutical | Evolus vs. Phibro Animal Health | Evolus vs. ANI Pharmaceuticals | Evolus vs. Procaps Group SA |
| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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