Correlation Between Filament Health and Indoor Harvest
Can any of the company-specific risk be diversified away by investing in both Filament Health and Indoor 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 Filament Health and Indoor Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filament Health Corp and Indoor Harvest Corp, you can compare the effects of market volatilities on Filament Health and Indoor 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 Filament Health with a short position of Indoor Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filament Health and Indoor Harvest.
Diversification Opportunities for Filament Health and Indoor Harvest
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Filament and Indoor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Filament Health Corp and Indoor Harvest Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indoor Harvest Corp and Filament Health 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 Filament Health Corp are associated (or correlated) with Indoor Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indoor Harvest Corp has no effect on the direction of Filament Health i.e., Filament Health and Indoor Harvest go up and down completely randomly.
Pair Corralation between Filament Health and Indoor Harvest
Assuming the 90 days horizon Filament Health Corp is expected to generate 1.88 times more return on investment than Indoor Harvest. However, Filament Health is 1.88 times more volatile than Indoor Harvest Corp. It trades about 0.08 of its potential returns per unit of risk. Indoor Harvest Corp is currently generating about -0.02 per unit of risk. If you would invest 5.03 in Filament Health Corp on August 26, 2024 and sell it today you would lose (2.03) from holding Filament Health Corp or give up 40.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filament Health Corp vs. Indoor Harvest Corp
Performance |
| Timeline |
| Filament Health Corp |
| Indoor Harvest Corp |
Filament Health and Indoor Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filament Health and Indoor Harvest
The main advantage of trading using opposite Filament Health and Indoor Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filament Health position performs unexpectedly, Indoor 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 Indoor Harvest will offset losses from the drop in Indoor Harvest's long position.| Filament Health vs. Target Group | Filament Health vs. Aequus Pharmaceuticals | Filament Health vs. Sky Century Investment | Filament Health vs. Levitee Labs |
| Indoor Harvest vs. Green Cures Botanical | Indoor Harvest vs. Cann American Corp | Indoor Harvest vs. Rimrock Gold Corp | Indoor Harvest vs. Galexxy 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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