Correlation Between Acreage Holdings and Blueberries Medical

Can any of the company-specific risk be diversified away by investing in both Acreage Holdings and Blueberries Medical 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 Acreage Holdings and Blueberries Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acreage Holdings and Blueberries Medical Corp, you can compare the effects of market volatilities on Acreage Holdings and Blueberries Medical 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 Acreage Holdings with a short position of Blueberries Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acreage Holdings and Blueberries Medical.

Diversification Opportunities for Acreage Holdings and Blueberries Medical

0.49

Correlation Coefficient

Acreage Holdings  Blueberries Medical

Very weak diversification

The 3 months correlation between Acreage and Blueberries is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Acreage Holdings and Blueberries Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blueberries Medical Corp and Acreage 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 Acreage Holdings are associated (or correlated) with Blueberries Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blueberries Medical Corp has no effect on the direction of Acreage Holdings i.e., Acreage Holdings and Blueberries Medical go up and down completely randomly.

Pair Corralation between Acreage Holdings and Blueberries Medical

Assuming the 90 days horizon Acreage Holdings is expected to generate 1.53 times more return on investment than Blueberries Medical. However, Acreage Holdings is 1.53 times more volatile than Blueberries Medical Corp. It trades about 0.01 of its potential returns per unit of risk. Blueberries Medical Corp is currently generating about 0.0 per unit of risk. If you would invest  19.00  in Acreage Holdings on September 29, 2024 and sell it today you would lose (7.00) from holding Acreage Holdings or give up 36.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	78.46%
Values	Daily Returns

Acreage Holdings  vs.  Blueberries Medical Corp

Acreage Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Acreage Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, Acreage Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Blueberries Medical Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blueberries Medical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Blueberries Medical is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Acreage Holdings and Blueberries Medical

The main advantage of trading using opposite Acreage Holdings and Blueberries Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acreage Holdings position performs unexpectedly, Blueberries Medical 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 Blueberries Medical will offset losses from the drop in Blueberries Medical's long position.

The idea behind Acreage Holdings and Blueberries Medical 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.