Correlation Between Agra Ventures and CordovaCann Corp

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

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

Diversification Opportunities for Agra Ventures and CordovaCann Corp

0.09

Correlation Coefficient

Agra Ventures  CordovaCann Corp

Significant diversification

The 3 months correlation between Agra and CordovaCann is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Agra Ventures and CordovaCann Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CordovaCann Corp and Agra Ventures 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 Agra Ventures are associated (or correlated) with CordovaCann Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CordovaCann Corp has no effect on the direction of Agra Ventures i.e., Agra Ventures and CordovaCann Corp go up and down completely randomly.

Pair Corralation between Agra Ventures and CordovaCann Corp

Assuming the 90 days horizon Agra Ventures is expected to generate 2.13 times less return on investment than CordovaCann Corp. But when comparing it to its historical volatility, Agra Ventures is 2.18 times less risky than CordovaCann Corp. It trades about 0.1 of its potential returns per unit of risk. CordovaCann Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  6.00  in CordovaCann Corp on September 3, 2024 and sell it today you would earn a total of  0.60  from holding CordovaCann Corp or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Agra Ventures  vs.  CordovaCann Corp

Agra Ventures

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agra Ventures are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Agra Ventures reported solid returns over the last few months and may actually be approaching a breakup point.

CordovaCann Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CordovaCann Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, CordovaCann Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agra Ventures and CordovaCann Corp

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

The idea behind Agra Ventures and CordovaCann 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.