Correlation Between Amexdrug and TILT Holdings

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

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

Diversification Opportunities for Amexdrug and TILT Holdings

0.0

Correlation Coefficient

Amexdrug  TILT Holdings

Pay attention - limited upside

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

Pair Corralation between Amexdrug and TILT Holdings

If you would invest  0.70  in TILT Holdings on December 20, 2024 and sell it today you would earn a total of  0.12  from holding TILT Holdings or generate 17.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Amexdrug  vs.  TILT Holdings

Amexdrug

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amexdrug has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Amexdrug is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

TILT Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TILT Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, TILT Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amexdrug and TILT Holdings

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

The idea behind Amexdrug and TILT Holdings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.