Correlation Between Maple Leaf and Herborium
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Herborium 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 Maple Leaf and Herborium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Green and Herborium Group, you can compare the effects of market volatilities on Maple Leaf and Herborium 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 Maple Leaf with a short position of Herborium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Herborium.
Diversification Opportunities for Maple Leaf and Herborium
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Maple and Herborium is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Green and Herborium Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herborium Group and Maple Leaf 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 Maple Leaf Green are associated (or correlated) with Herborium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herborium Group has no effect on the direction of Maple Leaf i.e., Maple Leaf and Herborium go up and down completely randomly.
Pair Corralation between Maple Leaf and Herborium
If you would invest 2.50 in Maple Leaf Green on August 29, 2024 and sell it today you would lose (0.20) from holding Maple Leaf Green or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.32% |
| Values | Daily Returns |
Maple Leaf Green vs. Herborium Group
Performance |
| Timeline |
| Maple Leaf Green |
| Herborium Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maple Leaf and Herborium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and Herborium
The main advantage of trading using opposite Maple Leaf and Herborium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, Herborium 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 Herborium will offset losses from the drop in Herborium's long position.| Maple Leaf vs. Greater Cannabis | Maple Leaf vs. Global Hemp Group | Maple Leaf vs. Cannabis Suisse Corp | Maple Leaf vs. Mc Endvrs |
| Herborium vs. Cann American Corp | Herborium vs. GelStat Corp | Herborium vs. Green Cures Botanical | Herborium vs. Nutranomics |
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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