Correlation Between QUALCOMM and Akanda Corp
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By analyzing existing cross correlation between QUALCOMM INC 48 and Akanda Corp, you can compare the effects of market volatilities on QUALCOMM 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 QUALCOMM with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of QUALCOMM and Akanda Corp.
Diversification Opportunities for QUALCOMM and Akanda Corp
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QUALCOMM and Akanda is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding QUALCOMM INC 48 and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and QUALCOMM 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 QUALCOMM INC 48 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 QUALCOMM i.e., QUALCOMM and Akanda Corp go up and down completely randomly.
Pair Corralation between QUALCOMM and Akanda Corp
Assuming the 90 days trading horizon QUALCOMM is expected to generate 4.73 times less return on investment than Akanda Corp. But when comparing it to its historical volatility, QUALCOMM INC 48 is 6.61 times less risky than Akanda Corp. It trades about 0.06 of its potential returns per unit of risk. Akanda Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 170.00 in Akanda Corp on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Akanda Corp or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
QUALCOMM INC 48 vs. Akanda Corp
Performance |
| Timeline |
| QUALCOMM INC 48 |
| Akanda Corp |
QUALCOMM and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QUALCOMM and Akanda Corp
The main advantage of trading using opposite QUALCOMM and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUALCOMM 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 QUALCOMM INC 48 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. Phibro Animal Health | Akanda Corp vs. Procaps Group SA | Akanda Corp vs. Amphastar P | Akanda Corp vs. Alkermes Plc |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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