Correlation Between Acreage Holdings and Marimed

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

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

Diversification Opportunities for Acreage Holdings and Marimed

0.0

Correlation Coefficient

Acreage Holdings  Marimed

Pay attention - limited upside

The 3 months correlation between Acreage and Marimed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acreage Holdings and Marimed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimed 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 Marimed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimed has no effect on the direction of Acreage Holdings i.e., Acreage Holdings and Marimed go up and down completely randomly.

Pair Corralation between Acreage Holdings and Marimed

If you would invest  12.00  in Marimed on December 27, 2024 and sell it today you would lose (1.00) from holding Marimed or give up 8.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Acreage Holdings  vs.  Marimed

Acreage Holdings

Risk-Adjusted Performance

Very Weak

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

Marimed

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marimed has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Marimed is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Acreage Holdings and Marimed

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

The idea behind Acreage Holdings and Marimed 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.