Correlation Between Leef Brands and CannTrust Holdings
Can any of the company-specific risk be diversified away by investing in both Leef Brands and CannTrust 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 Leef Brands and CannTrust Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leef Brands and CannTrust Holdings, you can compare the effects of market volatilities on Leef Brands and CannTrust 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 Leef Brands with a short position of CannTrust Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leef Brands and CannTrust Holdings.
Diversification Opportunities for Leef Brands and CannTrust Holdings
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Leef and CannTrust is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Leef Brands and CannTrust Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CannTrust Holdings and Leef 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 Leef Brands are associated (or correlated) with CannTrust Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CannTrust Holdings has no effect on the direction of Leef Brands i.e., Leef Brands and CannTrust Holdings go up and down completely randomly.
Pair Corralation between Leef Brands and CannTrust Holdings
If you would invest 15.00 in Leef Brands on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Leef Brands or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Leef Brands vs. CannTrust Holdings
Performance |
| Timeline |
| Leef Brands |
| CannTrust Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Leef Brands and CannTrust Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leef Brands and CannTrust Holdings
The main advantage of trading using opposite Leef Brands and CannTrust Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leef Brands position performs unexpectedly, CannTrust 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 CannTrust Holdings will offset losses from the drop in CannTrust Holdings' long position.| Leef Brands vs. Apple Inc | Leef Brands vs. Microsoft | Leef Brands vs. Alphabet Inc Class C | Leef Brands vs. Meta Platforms |
| CannTrust Holdings vs. Acreage Holdings | CannTrust Holdings vs. BZAM | CannTrust Holdings vs. Choom Holdings | CannTrust Holdings vs. Stem Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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