Correlation Between OrganiGram Holdings and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both OrganiGram Holdings and Slate Grocery 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 OrganiGram Holdings and Slate Grocery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OrganiGram Holdings and Slate Grocery REIT, you can compare the effects of market volatilities on OrganiGram Holdings and Slate Grocery 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 OrganiGram Holdings with a short position of Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of OrganiGram Holdings and Slate Grocery.
Diversification Opportunities for OrganiGram Holdings and Slate Grocery
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OrganiGram and Slate is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding OrganiGram Holdings and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT and OrganiGram 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 OrganiGram Holdings are associated (or correlated) with Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of OrganiGram Holdings i.e., OrganiGram Holdings and Slate Grocery go up and down completely randomly.
Pair Corralation between OrganiGram Holdings and Slate Grocery
Assuming the 90 days trading horizon OrganiGram Holdings is expected to under-perform the Slate Grocery. In addition to that, OrganiGram Holdings is 2.8 times more volatile than Slate Grocery REIT. It trades about -0.23 of its total potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.18 per unit of volatility. If you would invest 981.00 in Slate Grocery REIT on November 29, 2024 and sell it today you would earn a total of 70.00 from holding Slate Grocery REIT or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
OrganiGram Holdings vs. Slate Grocery REIT
Performance |
| Timeline |
| OrganiGram Holdings |
| Slate Grocery REIT |
OrganiGram Holdings and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OrganiGram Holdings and Slate Grocery
The main advantage of trading using opposite OrganiGram Holdings and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OrganiGram Holdings position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery's long position.| OrganiGram Holdings vs. Sun Peak Metals | OrganiGram Holdings vs. Royal Road Minerals | OrganiGram Holdings vs. Information Services | OrganiGram Holdings vs. Champion Gaming Group |
| Slate Grocery vs. HIVE Blockchain Technologies | Slate Grocery vs. Upstart Investments | Slate Grocery vs. Wishpond Technologies | Slate Grocery vs. Maple Peak Investments |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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