Correlation Between Speakeasy Cannabis and Marimed
Can any of the company-specific risk be diversified away by investing in both Speakeasy Cannabis and Marimed 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 Marimed 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 Marimed, you can compare the effects of market volatilities on Speakeasy Cannabis and Marimed 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 Marimed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Speakeasy Cannabis and Marimed.
Diversification Opportunities for Speakeasy Cannabis and Marimed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Speakeasy and Marimed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Speakeasy Cannabis Club and Marimed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimed 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 Marimed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimed has no effect on the direction of Speakeasy Cannabis i.e., Speakeasy Cannabis and Marimed go up and down completely randomly.
Pair Corralation between Speakeasy Cannabis and Marimed
Assuming the 90 days horizon Speakeasy Cannabis Club is expected to under-perform the Marimed. But the pink sheet apears to be less risky and, when comparing its historical volatility, Speakeasy Cannabis Club is 1.06 times less risky than Marimed. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Marimed is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Marimed on August 31, 2024 and sell it today you would lose (24.00) from holding Marimed or give up 61.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Speakeasy Cannabis Club vs. Marimed
Performance |
| Timeline |
| Speakeasy Cannabis Club |
| Marimed |
Speakeasy Cannabis and Marimed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Speakeasy Cannabis and Marimed
The main advantage of trading using opposite Speakeasy Cannabis and Marimed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Speakeasy Cannabis position performs unexpectedly, Marimed 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 Marimed will offset losses from the drop in Marimed's long position.| Speakeasy Cannabis vs. Benchmark Botanics | Speakeasy Cannabis vs. City View Green | Speakeasy Cannabis vs. BC Craft Supply | Speakeasy Cannabis vs. Ravenquest Biomed |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |