Correlation Between Leafly Holdings and Scienture Holdings,

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

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

Diversification Opportunities for Leafly Holdings and Scienture Holdings,

-0.02

Correlation Coefficient

Leafly Holdings  Scienture Holdings,

Good diversification

The 3 months correlation between Leafly and Scienture is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Leafly Holdings and Scienture Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scienture Holdings, and Leafly 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 Leafly Holdings are associated (or correlated) with Scienture Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scienture Holdings, has no effect on the direction of Leafly Holdings i.e., Leafly Holdings and Scienture Holdings, go up and down completely randomly.

Pair Corralation between Leafly Holdings and Scienture Holdings,

Assuming the 90 days horizon Leafly Holdings is expected to generate 8.07 times more return on investment than Scienture Holdings,. However, Leafly Holdings is 8.07 times more volatile than Scienture Holdings,. It trades about 0.11 of its potential returns per unit of risk. Scienture Holdings, is currently generating about 0.07 per unit of risk. If you would invest  2.01  in Leafly Holdings on September 14, 2024 and sell it today you would earn a total of  0.11  from holding Leafly Holdings or generate 5.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.08%
Values	Daily Returns

Leafly Holdings  vs.  Scienture Holdings,

Leafly Holdings

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Leafly Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Leafly Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Scienture Holdings,

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Scienture Holdings, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Scienture Holdings, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Leafly Holdings and Scienture Holdings,

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

The idea behind Leafly Holdings and Scienture 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.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.