Correlation Between Blueberries Medical and Aleafia Health

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

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

Diversification Opportunities for Blueberries Medical and Aleafia Health

-0.22

Correlation Coefficient

Blueberries Medical  Aleafia Health

Very good diversification

The 3 months correlation between Blueberries and Aleafia is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Blueberries Medical Corp and Aleafia Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aleafia Health and Blueberries Medical 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 Blueberries Medical Corp are associated (or correlated) with Aleafia Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aleafia Health has no effect on the direction of Blueberries Medical i.e., Blueberries Medical and Aleafia Health go up and down completely randomly.

Pair Corralation between Blueberries Medical and Aleafia Health

If you would invest  1.00  in Blueberries Medical Corp on September 29, 2024 and sell it today you would earn a total of  0.08  from holding Blueberries Medical Corp or generate 8.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Blueberries Medical Corp  vs.  Aleafia Health

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.

Aleafia Health

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Blueberries Medical and Aleafia Health

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

The idea behind Blueberries Medical Corp and Aleafia Health 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.