Correlation Between Lowell Farms and Ayurcann Holdings
Can any of the company-specific risk be diversified away by investing in both Lowell Farms and Ayurcann 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 Lowell Farms and Ayurcann Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lowell Farms and Ayurcann Holdings Corp, you can compare the effects of market volatilities on Lowell Farms and Ayurcann 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 Lowell Farms with a short position of Ayurcann Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lowell Farms and Ayurcann Holdings.
Diversification Opportunities for Lowell Farms and Ayurcann Holdings
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lowell and Ayurcann is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lowell Farms and Ayurcann Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ayurcann Holdings Corp 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 Ayurcann Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ayurcann Holdings Corp has no effect on the direction of Lowell Farms i.e., Lowell Farms and Ayurcann Holdings go up and down completely randomly.
Pair Corralation between Lowell Farms and Ayurcann Holdings
Assuming the 90 days horizon Lowell Farms is expected to generate 1.15 times more return on investment than Ayurcann Holdings. However, Lowell Farms is 1.15 times more volatile than Ayurcann Holdings Corp. It trades about 0.05 of its potential returns per unit of risk. Ayurcann Holdings Corp is currently generating about 0.06 per unit of risk. If you would invest 35.00 in Lowell Farms on November 27, 2024 and sell it today you would lose (33.50) from holding Lowell Farms or give up 95.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.95% |
| Values | Daily Returns |
Lowell Farms vs. Ayurcann Holdings Corp
Performance |
| Timeline |
| Lowell Farms |
| Ayurcann Holdings Corp |
Lowell Farms and Ayurcann Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lowell Farms and Ayurcann Holdings
The main advantage of trading using opposite Lowell Farms and Ayurcann Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lowell Farms position performs unexpectedly, Ayurcann 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 Ayurcann Holdings will offset losses from the drop in Ayurcann Holdings' 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 |
| Ayurcann Holdings vs. Ionic Brands Corp | Ayurcann Holdings vs. Lowell Farms | Ayurcann Holdings vs. Vext Science | Ayurcann Holdings vs. Grown Rogue International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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