Correlation Between Lowell Farms and Amexdrug
Can any of the company-specific risk be diversified away by investing in both Lowell Farms and Amexdrug 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 Lowell Farms and Amexdrug into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lowell Farms and Amexdrug, you can compare the effects of market volatilities on Lowell Farms and Amexdrug 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 Lowell Farms with a short position of Amexdrug. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lowell Farms and Amexdrug.
Diversification Opportunities for Lowell Farms and Amexdrug
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lowell and Amexdrug is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lowell Farms and Amexdrug in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amexdrug and Lowell Farms 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 Lowell Farms are associated (or correlated) with Amexdrug. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amexdrug has no effect on the direction of Lowell Farms i.e., Lowell Farms and Amexdrug go up and down completely randomly.
Pair Corralation between Lowell Farms and Amexdrug
If you would invest 1.80 in Lowell Farms on August 29, 2024 and sell it today you would lose (0.25) from holding Lowell Farms or give up 13.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lowell Farms vs. Amexdrug
Performance |
| Timeline |
| Lowell Farms |
| Amexdrug |
Lowell Farms and Amexdrug Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lowell Farms and Amexdrug
The main advantage of trading using opposite Lowell Farms and Amexdrug positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lowell Farms position performs unexpectedly, Amexdrug 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 Amexdrug will offset losses from the drop in Amexdrug's long position.| Lowell Farms vs. Medicine Man Technologies | Lowell Farms vs. Ascend Wellness Holdings | Lowell Farms vs. Goodness Growth Holdings | Lowell Farms vs. AYR Strategies Class |
| Amexdrug vs. Red Branch Technologies | Amexdrug vs. Mitsubishi UFJ Lease | Amexdrug vs. Analog Devices | Amexdrug vs. BW Offshore Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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