Correlation Between Trulieve Cannabis and Procyon

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

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

Diversification Opportunities for Trulieve Cannabis and Procyon

-0.1

Correlation Coefficient

Trulieve Cannabis  Procyon

Good diversification

The 3 months correlation between Trulieve and Procyon is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Trulieve Cannabis Corp and Procyon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procyon and Trulieve Cannabis 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 Trulieve Cannabis Corp are associated (or correlated) with Procyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procyon has no effect on the direction of Trulieve Cannabis i.e., Trulieve Cannabis and Procyon go up and down completely randomly.

Pair Corralation between Trulieve Cannabis and Procyon

Assuming the 90 days horizon Trulieve Cannabis Corp is expected to under-perform the Procyon. In addition to that, Trulieve Cannabis is 1.03 times more volatile than Procyon. It trades about -0.1 of its total potential returns per unit of risk. Procyon is currently generating about -0.03 per unit of volatility. If you would invest  26.00  in Procyon on October 6, 2024 and sell it today you would lose (7.00) from holding Procyon or give up 26.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Trulieve Cannabis Corp  vs.  Procyon

Trulieve Cannabis Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Trulieve Cannabis Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Procyon

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Procyon has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Trulieve Cannabis and Procyon

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

The idea behind Trulieve Cannabis Corp and Procyon 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 Commodity Directory module to find actively traded commodities issued by global exchanges.