Correlation Between OrganiGram Holdings and Cronos
Can any of the company-specific risk be diversified away by investing in both OrganiGram Holdings and Cronos 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 OrganiGram Holdings and Cronos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OrganiGram Holdings and Cronos Group, you can compare the effects of market volatilities on OrganiGram Holdings and Cronos 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 OrganiGram Holdings with a short position of Cronos. Check out your portfolio center. Please also check ongoing floating volatility patterns of OrganiGram Holdings and Cronos.
Diversification Opportunities for OrganiGram Holdings and Cronos
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OrganiGram and Cronos is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding OrganiGram Holdings and Cronos Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cronos Group and OrganiGram 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 OrganiGram Holdings are associated (or correlated) with Cronos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cronos Group has no effect on the direction of OrganiGram Holdings i.e., OrganiGram Holdings and Cronos go up and down completely randomly.
Pair Corralation between OrganiGram Holdings and Cronos
Considering the 90-day investment horizon OrganiGram Holdings is expected to generate 1.53 times more return on investment than Cronos. However, OrganiGram Holdings is 1.53 times more volatile than Cronos Group. It trades about -0.06 of its potential returns per unit of risk. Cronos Group is currently generating about -0.28 per unit of risk. If you would invest 134.00 in OrganiGram Holdings on March 22, 2025 and sell it today you would lose (5.00) from holding OrganiGram Holdings or give up 3.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OrganiGram Holdings vs. Cronos Group
Performance |
| Timeline |
| OrganiGram Holdings |
| Cronos Group |
OrganiGram Holdings and Cronos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OrganiGram Holdings and Cronos
The main advantage of trading using opposite OrganiGram Holdings and Cronos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OrganiGram Holdings position performs unexpectedly, Cronos 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 Cronos will offset losses from the drop in Cronos' long position.| OrganiGram Holdings vs. Cronos Group | OrganiGram Holdings vs. Aurora Cannabis | OrganiGram Holdings vs. SNDL Inc | OrganiGram Holdings vs. Canopy Growth Corp |
| Cronos vs. OrganiGram Holdings | Cronos vs. Aurora Cannabis | Cronos vs. SNDL Inc | Cronos vs. Canopy Growth Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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