Correlation Between Elixinol Global and TILT Holdings
Can any of the company-specific risk be diversified away by investing in both Elixinol Global 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 Elixinol Global and TILT Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and TILT Holdings, you can compare the effects of market volatilities on Elixinol Global 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 Elixinol Global with a short position of TILT Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and TILT Holdings.
Diversification Opportunities for Elixinol Global and TILT Holdings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elixinol and TILT is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and TILT Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TILT Holdings and Elixinol Global 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 Elixinol Global 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 Elixinol Global i.e., Elixinol Global and TILT Holdings go up and down completely randomly.
Pair Corralation between Elixinol Global and TILT Holdings
Assuming the 90 days horizon Elixinol Global is expected to generate 10.95 times more return on investment than TILT Holdings. However, Elixinol Global is 10.95 times more volatile than TILT Holdings. It trades about 0.17 of its potential returns per unit of risk. TILT Holdings is currently generating about -0.09 per unit of risk. If you would invest 0.22 in Elixinol Global on September 14, 2024 and sell it today you would earn a total of 0.28 from holding Elixinol Global or generate 127.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Elixinol Global vs. TILT Holdings
Performance |
Timeline |
Elixinol Global |
TILT Holdings |
Elixinol Global and TILT Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elixinol Global and TILT Holdings
The main advantage of trading using opposite Elixinol Global and TILT Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global 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.Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
TILT Holdings vs. 4Front Ventures Corp | TILT Holdings vs. Khiron Life Sciences | TILT Holdings vs. BellRock Brands | TILT Holdings vs. Elixinol Global |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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