Correlation Between Pure Extracts and Acreage Holdings
Can any of the company-specific risk be diversified away by investing in both Pure Extracts and Acreage 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 Pure Extracts and Acreage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pure Extracts Technologies and Acreage Holdings, you can compare the effects of market volatilities on Pure Extracts and Acreage 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 Pure Extracts with a short position of Acreage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Extracts and Acreage Holdings.
Diversification Opportunities for Pure Extracts and Acreage Holdings
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pure and Acreage is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Pure Extracts Technologies and Acreage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acreage Holdings and Pure Extracts 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 Pure Extracts Technologies are associated (or correlated) with Acreage Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acreage Holdings has no effect on the direction of Pure Extracts i.e., Pure Extracts and Acreage Holdings go up and down completely randomly.
Pair Corralation between Pure Extracts and Acreage Holdings
If you would invest 18.00 in Acreage Holdings on August 26, 2024 and sell it today you would lose (2.00) from holding Acreage Holdings or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Pure Extracts Technologies vs. Acreage Holdings
Performance |
| Timeline |
| Pure Extracts Techno |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Acreage Holdings |
Pure Extracts and Acreage Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pure Extracts and Acreage Holdings
The main advantage of trading using opposite Pure Extracts and Acreage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pure Extracts position performs unexpectedly, Acreage 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 Acreage Holdings will offset losses from the drop in Acreage Holdings' long position.| Pure Extracts vs. Benchmark Botanics | Pure Extracts vs. Speakeasy Cannabis Club | Pure Extracts vs. City View Green | Pure Extracts vs. BC Craft Supply |
| Acreage Holdings vs. Green Cures Botanical | Acreage Holdings vs. Indoor Harvest Corp | Acreage Holdings vs. Speakeasy Cannabis Club | Acreage Holdings vs. Benchmark Botanics |
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 Stocks Directory module to find actively traded stocks across global markets.
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