Correlation Between Clever Leaves and Khiron Life
Can any of the company-specific risk be diversified away by investing in both Clever Leaves and Khiron Life 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 Clever Leaves and Khiron Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clever Leaves Holdings and Khiron Life Sciences, you can compare the effects of market volatilities on Clever Leaves and Khiron Life 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 Clever Leaves with a short position of Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clever Leaves and Khiron Life.
Diversification Opportunities for Clever Leaves and Khiron Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clever and Khiron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clever Leaves Holdings and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences and Clever Leaves 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 Clever Leaves Holdings are associated (or correlated) with Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of Clever Leaves i.e., Clever Leaves and Khiron Life go up and down completely randomly.
Pair Corralation between Clever Leaves and Khiron Life
Assuming the 90 days horizon Clever Leaves is expected to generate 3.59 times less return on investment than Khiron Life. But when comparing it to its historical volatility, Clever Leaves Holdings is 3.48 times less risky than Khiron Life. It trades about 0.05 of its potential returns per unit of risk. Khiron Life Sciences is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7.90 in Khiron Life Sciences on October 12, 2024 and sell it today you would lose (7.89) from holding Khiron Life Sciences or give up 99.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 25.45% |
Values | Daily Returns |
Clever Leaves Holdings vs. Khiron Life Sciences
Performance |
Timeline |
Clever Leaves Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Khiron Life Sciences |
Clever Leaves and Khiron Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clever Leaves and Khiron Life
The main advantage of trading using opposite Clever Leaves and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clever Leaves position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.Clever Leaves vs. Clever Leaves Holdings | Clever Leaves vs. CannBioRx Life Sciences | Clever Leaves vs. Clene Inc | Clever Leaves vs. CuriosityStream |
Khiron Life vs. Blueberries Medical Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. City View Green | Khiron Life vs. Benchmark Botanics |
Check out your portfolio center.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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |