Correlation Between Leafly Holdings and WEBUY GLOBAL
Can any of the company-specific risk be diversified away by investing in both Leafly Holdings and WEBUY GLOBAL 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 Leafly Holdings and WEBUY GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leafly Holdings and WEBUY GLOBAL LTD, you can compare the effects of market volatilities on Leafly Holdings and WEBUY GLOBAL 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 Leafly Holdings with a short position of WEBUY GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leafly Holdings and WEBUY GLOBAL.
Diversification Opportunities for Leafly Holdings and WEBUY GLOBAL
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Leafly and WEBUY is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Leafly Holdings and WEBUY GLOBAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEBUY GLOBAL LTD and Leafly Holdings 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 Leafly Holdings are associated (or correlated) with WEBUY GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEBUY GLOBAL LTD has no effect on the direction of Leafly Holdings i.e., Leafly Holdings and WEBUY GLOBAL go up and down completely randomly.
Pair Corralation between Leafly Holdings and WEBUY GLOBAL
Given the investment horizon of 90 days Leafly Holdings is expected to generate 0.71 times more return on investment than WEBUY GLOBAL. However, Leafly Holdings is 1.42 times less risky than WEBUY GLOBAL. It trades about -0.01 of its potential returns per unit of risk. WEBUY GLOBAL LTD is currently generating about -0.04 per unit of risk. If you would invest 660.00 in Leafly Holdings on September 1, 2024 and sell it today you would lose (513.00) from holding Leafly Holdings or give up 77.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.54% |
| Values | Daily Returns |
Leafly Holdings vs. WEBUY GLOBAL LTD
Performance |
| Timeline |
| Leafly Holdings |
| WEBUY GLOBAL LTD |
Leafly Holdings and WEBUY GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leafly Holdings and WEBUY GLOBAL
The main advantage of trading using opposite Leafly Holdings and WEBUY GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leafly Holdings position performs unexpectedly, WEBUY GLOBAL 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 WEBUY GLOBAL will offset losses from the drop in WEBUY GLOBAL's long position.| Leafly Holdings vs. Kiaro Holdings Corp | Leafly Holdings vs. Allstar Health Brands | Leafly Holdings vs. China Jo Jo Drugstores |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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