Correlation Between Vericel Corp and OrganiGram Holdings
Can any of the company-specific risk be diversified away by investing in both Vericel Corp and OrganiGram Holdings 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 Vericel Corp and OrganiGram Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vericel Corp Ord and OrganiGram Holdings, you can compare the effects of market volatilities on Vericel Corp and OrganiGram Holdings 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 Vericel Corp with a short position of OrganiGram Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericel Corp and OrganiGram Holdings.
Diversification Opportunities for Vericel Corp and OrganiGram Holdings
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vericel and OrganiGram is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and OrganiGram Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OrganiGram Holdings and Vericel Corp 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 Vericel Corp Ord are associated (or correlated) with OrganiGram Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OrganiGram Holdings has no effect on the direction of Vericel Corp i.e., Vericel Corp and OrganiGram Holdings go up and down completely randomly.
Pair Corralation between Vericel Corp and OrganiGram Holdings
Given the investment horizon of 90 days Vericel Corp Ord is expected to generate 1.03 times more return on investment than OrganiGram Holdings. However, Vericel Corp is 1.03 times more volatile than OrganiGram Holdings. It trades about 0.39 of its potential returns per unit of risk. OrganiGram Holdings is currently generating about -0.3 per unit of risk. If you would invest 4,566 in Vericel Corp Ord on August 27, 2024 and sell it today you would earn a total of 1,345 from holding Vericel Corp Ord or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vericel Corp Ord vs. OrganiGram Holdings
Performance |
| Timeline |
| Vericel Corp Ord |
| OrganiGram Holdings |
Vericel Corp and OrganiGram Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vericel Corp and OrganiGram Holdings
The main advantage of trading using opposite Vericel Corp and OrganiGram Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericel Corp position performs unexpectedly, OrganiGram Holdings 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 OrganiGram Holdings will offset losses from the drop in OrganiGram Holdings' long position.| Vericel Corp vs. Eliem Therapeutics | Vericel Corp vs. HCW Biologics | Vericel Corp vs. Scpharmaceuticals | Vericel Corp vs. Milestone Pharmaceuticals |
| OrganiGram Holdings vs. Cronos Group | OrganiGram Holdings vs. Aurora Cannabis | OrganiGram Holdings vs. SNDL Inc | OrganiGram Holdings vs. Canopy Growth 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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