Correlation Between Leafly Holdings and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both Leafly Holdings and Ingram Micro 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 Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leafly Holdings and Ingram Micro Holding, you can compare the effects of market volatilities on Leafly Holdings and Ingram Micro 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 Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leafly Holdings and Ingram Micro.
Diversification Opportunities for Leafly Holdings and Ingram Micro
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Leafly and Ingram is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Leafly Holdings and Ingram Micro Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro Holding 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro Holding has no effect on the direction of Leafly Holdings i.e., Leafly Holdings and Ingram Micro go up and down completely randomly.
Pair Corralation between Leafly Holdings and Ingram Micro
Assuming the 90 days horizon Leafly Holdings is expected to generate 5.33 times more return on investment than Ingram Micro. However, Leafly Holdings is 5.33 times more volatile than Ingram Micro Holding. It trades about 0.0 of its potential returns per unit of risk. Ingram Micro Holding is currently generating about -0.16 per unit of risk. If you would invest 2.79 in Leafly Holdings on August 31, 2024 and sell it today you would lose (0.27) from holding Leafly Holdings or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leafly Holdings vs. Ingram Micro Holding
Performance |
| Timeline |
| Leafly Holdings |
| Ingram Micro Holding |
Leafly Holdings and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leafly Holdings and Ingram Micro
The main advantage of trading using opposite Leafly Holdings and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leafly Holdings position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.| Leafly Holdings vs. Leafly Holdings | Leafly Holdings vs. WM Technology | Leafly Holdings vs. Revelation Biosciences | Leafly Holdings vs. AEye Inc |
| Ingram Micro vs. Arrow Electronics | Ingram Micro vs. Avnet Inc | Ingram Micro vs. ICZOOM Group Class | Ingram Micro vs. Synnex |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |