Correlation Between Grand Havana and Laird Superfood
Can any of the company-specific risk be diversified away by investing in both Grand Havana and Laird Superfood 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 Grand Havana and Laird Superfood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Havana and Laird Superfood, you can compare the effects of market volatilities on Grand Havana and Laird Superfood 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 Grand Havana with a short position of Laird Superfood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Havana and Laird Superfood.
Diversification Opportunities for Grand Havana and Laird Superfood
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grand and Laird is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Grand Havana and Laird Superfood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laird Superfood and Grand Havana 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 Grand Havana are associated (or correlated) with Laird Superfood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laird Superfood has no effect on the direction of Grand Havana i.e., Grand Havana and Laird Superfood go up and down completely randomly.
Pair Corralation between Grand Havana and Laird Superfood
Given the investment horizon of 90 days Grand Havana is expected to under-perform the Laird Superfood. In addition to that, Grand Havana is 1.14 times more volatile than Laird Superfood. It trades about -0.02 of its total potential returns per unit of risk. Laird Superfood is currently generating about 0.25 per unit of volatility. If you would invest 568.00 in Laird Superfood on August 24, 2024 and sell it today you would earn a total of 289.00 from holding Laird Superfood or generate 50.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Havana vs. Laird Superfood
Performance |
| Timeline |
| Grand Havana |
| Laird Superfood |
Grand Havana and Laird Superfood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Havana and Laird Superfood
The main advantage of trading using opposite Grand Havana and Laird Superfood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Havana position performs unexpectedly, Laird Superfood 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 Laird Superfood will offset losses from the drop in Laird Superfood's long position.| Grand Havana vs. Right On Brands | Grand Havana vs. BioAdaptives | Grand Havana vs. Yuenglings Ice Cream | Grand Havana vs. Bit Origin |
| Laird Superfood vs. Bellring Brands LLC | Laird Superfood vs. Treehouse Foods | Laird Superfood vs. Ingredion Incorporated | Laird Superfood vs. JM Smucker |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |