Correlation Between FEDEX and Akanda Corp
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By analyzing existing cross correlation between FEDEX P 455 and Akanda Corp, you can compare the effects of market volatilities on FEDEX and Akanda Corp 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 FEDEX with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEDEX and Akanda Corp.
Diversification Opportunities for FEDEX and Akanda Corp
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FEDEX and Akanda is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding FEDEX P 455 and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and FEDEX 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 FEDEX P 455 are associated (or correlated) with Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of FEDEX i.e., FEDEX and Akanda Corp go up and down completely randomly.
Pair Corralation between FEDEX and Akanda Corp
Assuming the 90 days trading horizon FEDEX P 455 is expected to generate 9.81 times more return on investment than Akanda Corp. However, FEDEX is 9.81 times more volatile than Akanda Corp. It trades about 0.08 of its potential returns per unit of risk. Akanda Corp is currently generating about -0.05 per unit of risk. If you would invest 8,745 in FEDEX P 455 on September 3, 2024 and sell it today you would lose (623.00) from holding FEDEX P 455 or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.94% |
| Values | Daily Returns |
FEDEX P 455 vs. Akanda Corp
Performance |
| Timeline |
| FEDEX P 455 |
| Akanda Corp |
FEDEX and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEDEX and Akanda Corp
The main advantage of trading using opposite FEDEX and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEDEX position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.The idea behind FEDEX P 455 and Akanda Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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