Correlation Between Ionic Brands and CLS Holdings
Can any of the company-specific risk be diversified away by investing in both Ionic Brands and CLS 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 Ionic Brands and CLS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ionic Brands Corp and CLS Holdings USA, you can compare the effects of market volatilities on Ionic Brands and CLS 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 Ionic Brands with a short position of CLS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ionic Brands and CLS Holdings.
Diversification Opportunities for Ionic Brands and CLS Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ionic and CLS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ionic Brands Corp and CLS Holdings USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLS Holdings USA and Ionic Brands 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 Ionic Brands Corp are associated (or correlated) with CLS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLS Holdings USA has no effect on the direction of Ionic Brands i.e., Ionic Brands and CLS Holdings go up and down completely randomly.
Pair Corralation between Ionic Brands and CLS Holdings
Assuming the 90 days horizon Ionic Brands Corp is expected to generate 5.48 times more return on investment than CLS Holdings. However, Ionic Brands is 5.48 times more volatile than CLS Holdings USA. It trades about 0.06 of its potential returns per unit of risk. CLS Holdings USA is currently generating about 0.05 per unit of risk. If you would invest 0.00 in Ionic Brands Corp on September 1, 2024 and sell it today you would earn a total of 0.01 from holding Ionic Brands Corp or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Ionic Brands Corp vs. CLS Holdings USA
Performance |
| Timeline |
| Ionic Brands Corp |
| CLS Holdings USA |
Ionic Brands and CLS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ionic Brands and CLS Holdings
The main advantage of trading using opposite Ionic Brands and CLS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ionic Brands position performs unexpectedly, CLS 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 CLS Holdings will offset losses from the drop in CLS Holdings' long position.| Ionic Brands vs. CuraScientific Corp | Ionic Brands vs. Earth Science Tech | Ionic Brands vs. Digital Development Partners | Ionic Brands vs. ManifestSeven Holdings |
| CLS Holdings vs. Benchmark Botanics | CLS Holdings vs. Speakeasy Cannabis Club | CLS Holdings vs. City View Green | CLS Holdings vs. BC Craft Supply |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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