Correlation Between Khiron Life and Pure Harvest
Can any of the company-specific risk be diversified away by investing in both Khiron Life and Pure Harvest 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 Khiron Life and Pure Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Pure Harvest Cannabis, you can compare the effects of market volatilities on Khiron Life and Pure Harvest 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 Khiron Life with a short position of Pure Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Pure Harvest.
Diversification Opportunities for Khiron Life and Pure Harvest
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Khiron and Pure is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Pure Harvest Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Harvest Cannabis and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with Pure Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Harvest Cannabis has no effect on the direction of Khiron Life i.e., Khiron Life and Pure Harvest go up and down completely randomly.
Pair Corralation between Khiron Life and Pure Harvest
If you would invest 0.10 in Pure Harvest Cannabis on September 14, 2024 and sell it today you would earn a total of 0.13 from holding Pure Harvest Cannabis or generate 130.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Khiron Life Sciences vs. Pure Harvest Cannabis
Performance |
| Timeline |
| Khiron Life Sciences |
| Pure Harvest Cannabis |
Khiron Life and Pure Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Pure Harvest
The main advantage of trading using opposite Khiron Life and Pure Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, Pure Harvest 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 Pure Harvest will offset losses from the drop in Pure Harvest's long position.The idea behind Khiron Life Sciences and Pure Harvest Cannabis pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Pure Harvest vs. Benchmark Botanics | Pure Harvest vs. Speakeasy Cannabis Club | Pure Harvest vs. City View Green | Pure Harvest 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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