Correlation Between Kaya Holdings and Grown Rogue

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

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

Diversification Opportunities for Kaya Holdings and Grown Rogue

0.26

Correlation Coefficient

Kaya Holdings  Grown Rogue

Modest diversification

The 3 months correlation between Kaya and Grown is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kaya Holdings and Grown Rogue International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grown Rogue International and Kaya Holdings 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 Kaya Holdings are associated (or correlated) with Grown Rogue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grown Rogue International has no effect on the direction of Kaya Holdings i.e., Kaya Holdings and Grown Rogue go up and down completely randomly.

Pair Corralation between Kaya Holdings and Grown Rogue

Given the investment horizon of 90 days Kaya Holdings is expected to generate 1.31 times less return on investment than Grown Rogue. In addition to that, Kaya Holdings is 2.12 times more volatile than Grown Rogue International. It trades about 0.03 of its total potential returns per unit of risk. Grown Rogue International is currently generating about 0.09 per unit of volatility. If you would invest  28.00  in Grown Rogue International on October 9, 2024 and sell it today you would earn a total of  36.00  from holding Grown Rogue International or generate 128.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Kaya Holdings  vs.  Grown Rogue International

Kaya Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kaya Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Grown Rogue International

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Kaya Holdings and Grown Rogue

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

The idea behind Kaya Holdings and Grown Rogue International 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.