Correlation Between Ionic Brands and Lowell Farms
Can any of the company-specific risk be diversified away by investing in both Ionic Brands and Lowell Farms 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 Lowell Farms 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 Lowell Farms, you can compare the effects of market volatilities on Ionic Brands and Lowell Farms 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 Lowell Farms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ionic Brands and Lowell Farms.
Diversification Opportunities for Ionic Brands and Lowell Farms
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ionic and Lowell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ionic Brands Corp and Lowell Farms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lowell Farms 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 Lowell Farms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lowell Farms has no effect on the direction of Ionic Brands i.e., Ionic Brands and Lowell Farms go up and down completely randomly.
Pair Corralation between Ionic Brands and Lowell Farms
If you would invest 1.30 in Lowell Farms on August 29, 2024 and sell it today you would earn a total of 0.40 from holding Lowell Farms or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ionic Brands Corp vs. Lowell Farms
Performance |
| Timeline |
| Ionic Brands Corp |
| Lowell Farms |
Ionic Brands and Lowell Farms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ionic Brands and Lowell Farms
The main advantage of trading using opposite Ionic Brands and Lowell Farms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ionic Brands position performs unexpectedly, Lowell Farms 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 Lowell Farms will offset losses from the drop in Lowell Farms' long position.| Ionic Brands vs. Green Cures Botanical | Ionic Brands vs. Cann American Corp | Ionic Brands vs. Rimrock Gold Corp | Ionic Brands vs. Galexxy Holdings |
| Lowell Farms vs. Medicine Man Technologies | Lowell Farms vs. Ascend Wellness Holdings | Lowell Farms vs. Goodness Growth Holdings | Lowell Farms vs. AYR Strategies Class |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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