Correlation Between Jumbo SA and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Jumbo SA 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 Jumbo SA and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jumbo SA and Akanda Corp, you can compare the effects of market volatilities on Jumbo SA 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 Jumbo SA with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jumbo SA and Akanda Corp.
Diversification Opportunities for Jumbo SA and Akanda Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jumbo and Akanda is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jumbo SA and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and Jumbo SA 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 Jumbo SA 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 Jumbo SA i.e., Jumbo SA and Akanda Corp go up and down completely randomly.
Pair Corralation between Jumbo SA and Akanda Corp
Assuming the 90 days horizon Jumbo SA is expected to generate 0.52 times more return on investment than Akanda Corp. However, Jumbo SA is 1.91 times less risky than Akanda Corp. It trades about 0.12 of its potential returns per unit of risk. Akanda Corp is currently generating about -0.08 per unit of risk. If you would invest 1,924 in Jumbo SA on September 3, 2024 and sell it today you would earn a total of 826.00 from holding Jumbo SA or generate 42.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 28.34% |
| Values | Daily Returns |
Jumbo SA vs. Akanda Corp
Performance |
| Timeline |
| Jumbo SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Akanda Corp |
Jumbo SA and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jumbo SA and Akanda Corp
The main advantage of trading using opposite Jumbo SA and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jumbo SA 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.| Jumbo SA vs. Akanda Corp | Jumbo SA vs. Microbot Medical | Jumbo SA vs. Cumberland Pharmaceuticals | Jumbo SA vs. Aquestive Therapeutics |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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