Correlation Between Elixinol Global and Stem Holdings
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and Stem 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 Elixinol Global and Stem Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Stem Holdings, you can compare the effects of market volatilities on Elixinol Global and Stem 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 Elixinol Global with a short position of Stem Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Stem Holdings.
Diversification Opportunities for Elixinol Global and Stem Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elixinol and Stem is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Stem Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stem Holdings and Elixinol Global 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 Elixinol Global are associated (or correlated) with Stem Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stem Holdings has no effect on the direction of Elixinol Global i.e., Elixinol Global and Stem Holdings go up and down completely randomly.
Pair Corralation between Elixinol Global and Stem Holdings
If you would invest 2.60 in Elixinol Global on August 29, 2025 and sell it today you would lose (2.35) from holding Elixinol Global or give up 90.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Elixinol Global vs. Stem Holdings
Performance |
| Timeline |
| Elixinol Global |
| Stem Holdings |
Elixinol Global and Stem Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Stem Holdings
The main advantage of trading using opposite Elixinol Global and Stem Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, Stem 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 Stem Holdings will offset losses from the drop in Stem Holdings' long position.| Elixinol Global vs. Federal Home Loan | Elixinol Global vs. Konoike Transport CoLtd | Elixinol Global vs. C3 Metals | Elixinol Global vs. Quipt Home Medical |
| Stem Holdings vs. Technology Telecommunication Acquisition | Stem Holdings vs. GMO Internet | Stem Holdings vs. Plaza Retail REIT | Stem Holdings vs. Salesforce |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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