Correlation Between Speakeasy Cannabis and Acreage Holdings
Can any of the company-specific risk be diversified away by investing in both Speakeasy Cannabis 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 Speakeasy Cannabis and Acreage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Speakeasy Cannabis Club and Acreage Holdings, you can compare the effects of market volatilities on Speakeasy Cannabis 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 Speakeasy Cannabis with a short position of Acreage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Speakeasy Cannabis and Acreage Holdings.
Diversification Opportunities for Speakeasy Cannabis and Acreage Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Speakeasy and Acreage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Speakeasy Cannabis Club and Acreage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acreage Holdings and Speakeasy Cannabis 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 Speakeasy Cannabis Club 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 Speakeasy Cannabis i.e., Speakeasy Cannabis and Acreage Holdings go up and down completely randomly.
Pair Corralation between Speakeasy Cannabis and Acreage Holdings
Assuming the 90 days horizon Speakeasy Cannabis Club is expected to under-perform the Acreage Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Speakeasy Cannabis Club is 1.91 times less risky than Acreage Holdings. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Acreage Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 125.00 in Acreage Holdings on August 30, 2024 and sell it today you would lose (116.00) from holding Acreage Holdings or give up 92.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Speakeasy Cannabis Club vs. Acreage Holdings
Performance |
| Timeline |
| Speakeasy Cannabis Club |
| Acreage Holdings |
Speakeasy Cannabis and Acreage Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Speakeasy Cannabis and Acreage Holdings
The main advantage of trading using opposite Speakeasy Cannabis and Acreage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Speakeasy Cannabis 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.| Speakeasy Cannabis vs. Green Cures Botanical | Speakeasy Cannabis vs. Cann American Corp | Speakeasy Cannabis vs. Rimrock Gold Corp | Speakeasy Cannabis vs. Galexxy Holdings |
| Acreage Holdings vs. AYR Strategies Class | Acreage Holdings vs. RIV Capital | Acreage Holdings vs. Verano Holdings Corp | Acreage Holdings vs. BZAM |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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