Correlation Between Silver Spike and Avicanna
Can any of the company-specific risk be diversified away by investing in both Silver Spike and Avicanna 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 Silver Spike and Avicanna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Spike Investment and Avicanna, you can compare the effects of market volatilities on Silver Spike and Avicanna 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 Silver Spike with a short position of Avicanna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Spike and Avicanna.
Diversification Opportunities for Silver Spike and Avicanna
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silver and Avicanna is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Silver Spike Investment and Avicanna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avicanna and Silver Spike 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 Silver Spike Investment are associated (or correlated) with Avicanna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avicanna has no effect on the direction of Silver Spike i.e., Silver Spike and Avicanna go up and down completely randomly.
Pair Corralation between Silver Spike and Avicanna
Given the investment horizon of 90 days Silver Spike Investment is expected to generate 0.22 times more return on investment than Avicanna. However, Silver Spike Investment is 4.6 times less risky than Avicanna. It trades about 0.24 of its potential returns per unit of risk. Avicanna is currently generating about 0.0 per unit of risk. If you would invest 1,115 in Silver Spike Investment on September 3, 2024 and sell it today you would earn a total of 181.00 from holding Silver Spike Investment or generate 16.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.25% |
| Values | Daily Returns |
Silver Spike Investment vs. Avicanna
Performance |
| Timeline |
| Silver Spike Investment |
| Avicanna |
Silver Spike and Avicanna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Spike and Avicanna
The main advantage of trading using opposite Silver Spike and Avicanna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Spike position performs unexpectedly, Avicanna 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 Avicanna will offset losses from the drop in Avicanna's long position.| Silver Spike vs. Entourage Health Corp | Silver Spike vs. Avicanna | Silver Spike vs. Benchmark Botanics | Silver Spike vs. Speakeasy Cannabis Club |
| Avicanna vs. Green Cures Botanical | Avicanna vs. Cann American Corp | Avicanna vs. Galexxy Holdings | Avicanna vs. Indoor Harvest 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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