Correlation Between Evolus and Curaleaf Holdings
Can any of the company-specific risk be diversified away by investing in both Evolus and Curaleaf Holdings 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 Curaleaf Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolus Inc and Curaleaf Holdings, you can compare the effects of market volatilities on Evolus and Curaleaf Holdings 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 Curaleaf Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolus and Curaleaf Holdings.
Diversification Opportunities for Evolus and Curaleaf Holdings
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Evolus and Curaleaf is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Evolus Inc and Curaleaf Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curaleaf Holdings 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 Curaleaf Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curaleaf Holdings has no effect on the direction of Evolus i.e., Evolus and Curaleaf Holdings go up and down completely randomly.
Pair Corralation between Evolus and Curaleaf Holdings
Given the investment horizon of 90 days Evolus Inc is expected to generate 0.4 times more return on investment than Curaleaf Holdings. However, Evolus Inc is 2.49 times less risky than Curaleaf Holdings. It trades about -0.26 of its potential returns per unit of risk. Curaleaf Holdings is currently generating about -0.18 per unit of risk. If you would invest 1,627 in Evolus Inc on August 27, 2024 and sell it today you would lose (360.00) from holding Evolus Inc or give up 22.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolus Inc vs. Curaleaf Holdings
Performance |
| Timeline |
| Evolus Inc |
| Curaleaf Holdings |
Evolus and Curaleaf Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolus and Curaleaf Holdings
The main advantage of trading using opposite Evolus and Curaleaf Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolus position performs unexpectedly, Curaleaf Holdings 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 Curaleaf Holdings will offset losses from the drop in Curaleaf Holdings' long position.| Evolus vs. Collegium Pharmaceutical | Evolus vs. Phibro Animal Health | Evolus vs. ANI Pharmaceuticals | Evolus vs. Procaps Group SA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |