Correlation Between Trulieve Cannabis and Speakeasy Cannabis

Can any of the company-specific risk be diversified away by investing in both Trulieve Cannabis and Speakeasy Cannabis 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 Speakeasy Cannabis 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 Speakeasy Cannabis Club, you can compare the effects of market volatilities on Trulieve Cannabis and Speakeasy Cannabis 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 Speakeasy Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trulieve Cannabis and Speakeasy Cannabis.

Diversification Opportunities for Trulieve Cannabis and Speakeasy Cannabis

0.0

Correlation Coefficient

Trulieve Cannabis  Speakeasy Cannabis

Pay attention - limited upside

The 3 months correlation between Trulieve and Speakeasy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Trulieve Cannabis Corp and Speakeasy Cannabis Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speakeasy Cannabis Club 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 Speakeasy Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speakeasy Cannabis Club has no effect on the direction of Trulieve Cannabis i.e., Trulieve Cannabis and Speakeasy Cannabis go up and down completely randomly.

Pair Corralation between Trulieve Cannabis and Speakeasy Cannabis

If you would invest  484.00  in Trulieve Cannabis Corp on October 22, 2024 and sell it today you would earn a total of  13.00  from holding Trulieve Cannabis Corp or generate 2.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.44%
Values	Daily Returns

Trulieve Cannabis Corp  vs.  Speakeasy Cannabis Club

Trulieve Cannabis Corp

Risk-Adjusted Performance

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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.

Speakeasy Cannabis Club

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Trulieve Cannabis and Speakeasy Cannabis

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

The idea behind Trulieve Cannabis Corp and Speakeasy Cannabis Club 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 CEOs Directory module to screen CEOs from public companies around the world.