Correlation Between Eisai and Leef Brands
Can any of the company-specific risk be diversified away by investing in both Eisai and Leef Brands 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 Eisai and Leef Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eisai Co and Leef Brands, you can compare the effects of market volatilities on Eisai and Leef Brands 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 Eisai with a short position of Leef Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eisai and Leef Brands.
Diversification Opportunities for Eisai and Leef Brands
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eisai and Leef is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Eisai Co and Leef Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leef Brands and Eisai 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 Eisai Co are associated (or correlated) with Leef Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leef Brands has no effect on the direction of Eisai i.e., Eisai and Leef Brands go up and down completely randomly.
Pair Corralation between Eisai and Leef Brands
Assuming the 90 days horizon Eisai Co is expected to under-perform the Leef Brands. But the pink sheet apears to be less risky and, when comparing its historical volatility, Eisai Co is 6.68 times less risky than Leef Brands. The pink sheet trades about -0.1 of its potential returns per unit of risk. The Leef Brands is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Leef Brands on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Leef Brands or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eisai Co vs. Leef Brands
Performance |
| Timeline |
| Eisai |
| Leef Brands |
Eisai and Leef Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eisai and Leef Brands
The main advantage of trading using opposite Eisai and Leef Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eisai position performs unexpectedly, Leef Brands 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 Leef Brands will offset losses from the drop in Leef Brands' long position.| Eisai vs. Copa Holdings SA | Eisai vs. United Airlines Holdings | Eisai vs. Delta Air Lines | Eisai vs. SkyWest |
| Leef Brands vs. Hasbro Inc | Leef Brands vs. Emerson Radio | Leef Brands vs. Playtech plc | Leef Brands vs. Cumberland 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |