Correlation Between Leef Brands and Sohm
Can any of the company-specific risk be diversified away by investing in both Leef Brands and Sohm 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 Sohm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leef Brands and Sohm Inc, you can compare the effects of market volatilities on Leef Brands and Sohm 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 Sohm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leef Brands and Sohm.
Diversification Opportunities for Leef Brands and Sohm
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Leef and Sohm is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Leef Brands and Sohm Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sohm Inc 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 Sohm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sohm Inc has no effect on the direction of Leef Brands i.e., Leef Brands and Sohm go up and down completely randomly.
Pair Corralation between Leef Brands and Sohm
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 Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Leef Brands vs. Sohm Inc
Performance |
| Timeline |
| Leef Brands |
| Sohm Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Leef Brands and Sohm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leef Brands and Sohm
The main advantage of trading using opposite Leef Brands and Sohm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leef Brands position performs unexpectedly, Sohm 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 Sohm will offset losses from the drop in Sohm's long position.| Leef Brands vs. Copa Holdings SA | Leef Brands vs. United Airlines Holdings | Leef Brands vs. Delta Air Lines | Leef Brands vs. SkyWest |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |