Correlation Between TILT Holdings and Cansortium
Can any of the company-specific risk be diversified away by investing in both TILT Holdings and Cansortium 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 TILT Holdings and Cansortium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TILT Holdings and Cansortium, you can compare the effects of market volatilities on TILT Holdings and Cansortium 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 TILT Holdings with a short position of Cansortium. Check out your portfolio center. Please also check ongoing floating volatility patterns of TILT Holdings and Cansortium.
Diversification Opportunities for TILT Holdings and Cansortium
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TILT and Cansortium is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding TILT Holdings and Cansortium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansortium and TILT 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 TILT Holdings are associated (or correlated) with Cansortium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansortium has no effect on the direction of TILT Holdings i.e., TILT Holdings and Cansortium go up and down completely randomly.
Pair Corralation between TILT Holdings and Cansortium
Assuming the 90 days horizon TILT Holdings is expected to generate 1.23 times more return on investment than Cansortium. However, TILT Holdings is 1.23 times more volatile than Cansortium. It trades about -0.11 of its potential returns per unit of risk. Cansortium is currently generating about -0.26 per unit of risk. If you would invest 1.10 in TILT Holdings on August 28, 2024 and sell it today you would lose (0.40) from holding TILT Holdings or give up 36.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
TILT Holdings vs. Cansortium
Performance |
| Timeline |
| TILT Holdings |
| Cansortium |
TILT Holdings and Cansortium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TILT Holdings and Cansortium
The main advantage of trading using opposite TILT Holdings and Cansortium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TILT Holdings position performs unexpectedly, Cansortium 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 Cansortium will offset losses from the drop in Cansortium's long position.| TILT Holdings vs. Cansortium | TILT Holdings vs. 4Front Ventures Corp | TILT Holdings vs. Medipharm Labs Corp | TILT Holdings vs. Khiron Life Sciences |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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