Correlation Between Kaya Holdings and CordovaCann Corp
Can any of the company-specific risk be diversified away by investing in both Kaya Holdings and CordovaCann Corp 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 CordovaCann Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaya Holdings and CordovaCann Corp, you can compare the effects of market volatilities on Kaya Holdings and CordovaCann Corp 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 CordovaCann Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaya Holdings and CordovaCann Corp.
Diversification Opportunities for Kaya Holdings and CordovaCann Corp
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaya and CordovaCann is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kaya Holdings and CordovaCann Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CordovaCann Corp 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 CordovaCann Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CordovaCann Corp has no effect on the direction of Kaya Holdings i.e., Kaya Holdings and CordovaCann Corp go up and down completely randomly.
Pair Corralation between Kaya Holdings and CordovaCann Corp
Given the investment horizon of 90 days Kaya Holdings is expected to generate 1.19 times less return on investment than CordovaCann Corp. But when comparing it to its historical volatility, Kaya Holdings is 1.83 times less risky than CordovaCann Corp. It trades about 0.09 of its potential returns per unit of risk. CordovaCann Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3.10 in CordovaCann Corp on September 10, 2025 and sell it today you would lose (1.28) from holding CordovaCann Corp or give up 41.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaya Holdings vs. CordovaCann Corp
Performance |
| Timeline |
| Kaya Holdings |
| CordovaCann Corp |
Kaya Holdings and CordovaCann Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaya Holdings and CordovaCann Corp
The main advantage of trading using opposite Kaya Holdings and CordovaCann Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaya Holdings position performs unexpectedly, CordovaCann Corp 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 CordovaCann Corp will offset losses from the drop in CordovaCann Corp's long position.| Kaya Holdings vs. Khiron Life Sciences | Kaya Holdings vs. Aion Therapeutic | Kaya Holdings vs. Textmunication Holdings | Kaya Holdings vs. EVIO Inc |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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