Correlation Between Hurco Companies and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Hurco Companies 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 Hurco Companies and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Akanda Corp, you can compare the effects of market volatilities on Hurco Companies 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 Hurco Companies with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Akanda Corp.
Diversification Opportunities for Hurco Companies and Akanda Corp
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hurco and Akanda is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and Hurco Companies 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 Hurco Companies 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 Hurco Companies i.e., Hurco Companies and Akanda Corp go up and down completely randomly.
Pair Corralation between Hurco Companies and Akanda Corp
Given the investment horizon of 90 days Hurco Companies is expected to generate 2.02 times less return on investment than Akanda Corp. But when comparing it to its historical volatility, Hurco Companies is 2.2 times less risky than Akanda Corp. It trades about 0.22 of its potential returns per unit of risk. Akanda Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Akanda Corp on September 1, 2024 and sell it today you would earn a total of 31.00 from holding Akanda Corp or generate 21.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurco Companies vs. Akanda Corp
Performance |
| Timeline |
| Hurco Companies |
| Akanda Corp |
Hurco Companies and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Akanda Corp
The main advantage of trading using opposite Hurco Companies and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies 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.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
| Akanda Corp vs. Tff Pharmaceuticals | Akanda Corp vs. Eliem Therapeutics | Akanda Corp vs. Inhibrx | Akanda Corp vs. Enliven Therapeutics |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |