Correlation Between Maple Leaf and Grey Cloak
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Grey Cloak 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 Grey Cloak 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 Grey Cloak Tech, you can compare the effects of market volatilities on Maple Leaf and Grey Cloak 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 Grey Cloak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Grey Cloak.
Diversification Opportunities for Maple Leaf and Grey Cloak
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maple and Grey is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Green and Grey Cloak Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grey Cloak Tech 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 Grey Cloak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grey Cloak Tech has no effect on the direction of Maple Leaf i.e., Maple Leaf and Grey Cloak go up and down completely randomly.
Pair Corralation between Maple Leaf and Grey Cloak
Assuming the 90 days horizon Maple Leaf is expected to generate 9.41 times less return on investment than Grey Cloak. But when comparing it to its historical volatility, Maple Leaf Green is 6.32 times less risky than Grey Cloak. It trades about 0.08 of its potential returns per unit of risk. Grey Cloak Tech is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 654.00 in Grey Cloak Tech on September 14, 2024 and sell it today you would lose (329.00) from holding Grey Cloak Tech or give up 50.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.01% |
| Values | Daily Returns |
Maple Leaf Green vs. Grey Cloak Tech
Performance |
| Timeline |
| Maple Leaf Green |
| Grey Cloak Tech |
Maple Leaf and Grey Cloak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and Grey Cloak
The main advantage of trading using opposite Maple Leaf and Grey Cloak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, Grey Cloak 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 Grey Cloak will offset losses from the drop in Grey Cloak's long position.| Maple Leaf vs. Grey Cloak Tech | Maple Leaf vs. CuraScientific Corp | Maple Leaf vs. Love Hemp Group | Maple Leaf vs. Greater Cannabis |
| Grey Cloak vs. ManifestSeven Holdings | Grey Cloak vs. Pure Harvest Cannabis | Grey Cloak vs. Ionic Brands Corp | Grey Cloak vs. CuraScientific Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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