Correlation Between IAnthus Capital and Clever Leaves

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

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

Diversification Opportunities for IAnthus Capital and Clever Leaves

0.71

Correlation Coefficient

IAnthus Capital  Clever Leaves

Poor diversification

The 3 months correlation between IAnthus and Clever is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding iAnthus Capital Holdings and Clever Leaves Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clever Leaves Holdings and IAnthus Capital 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 iAnthus Capital Holdings are associated (or correlated) with Clever Leaves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clever Leaves Holdings has no effect on the direction of IAnthus Capital i.e., IAnthus Capital and Clever Leaves go up and down completely randomly.

Pair Corralation between IAnthus Capital and Clever Leaves

If you would invest  0.40  in iAnthus Capital Holdings on October 27, 2024 and sell it today you would earn a total of  0.22  from holding iAnthus Capital Holdings or generate 55.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	5.26%
Values	Daily Returns

iAnthus Capital Holdings  vs.  Clever Leaves Holdings

iAnthus Capital Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in iAnthus Capital Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, IAnthus Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Clever Leaves Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clever Leaves Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Clever Leaves is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with IAnthus Capital and Clever Leaves

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

The idea behind iAnthus Capital Holdings and Clever Leaves 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.