Correlation Between OrganiGram Holdings and Powerbridge Technologies

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

By analyzing existing cross correlation between OrganiGram Holdings and Powerbridge Technologies Co, you can compare the effects of market volatilities on OrganiGram Holdings and Powerbridge Technologies 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 Powerbridge Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of OrganiGram Holdings and Powerbridge Technologies.

Diversification Opportunities for OrganiGram Holdings and Powerbridge Technologies

-0.29

Correlation Coefficient

OrganiGram Holdings  Powerbridge Technologies

Very good diversification

The 3 months correlation between OrganiGram and Powerbridge is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding OrganiGram Holdings and Powerbridge Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powerbridge Technologies 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 Powerbridge Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powerbridge Technologies has no effect on the direction of OrganiGram Holdings i.e., OrganiGram Holdings and Powerbridge Technologies go up and down completely randomly.

Pair Corralation between OrganiGram Holdings and Powerbridge Technologies

Considering the 90-day investment horizon OrganiGram Holdings is expected to generate 0.58 times more return on investment than Powerbridge Technologies. However, OrganiGram Holdings is 1.72 times less risky than Powerbridge Technologies. It trades about 0.1 of its potential returns per unit of risk. Powerbridge Technologies Co is currently generating about 0.02 per unit of risk. If you would invest  112.00  in OrganiGram Holdings on January 17, 2024 and sell it today you would earn a total of  76.00  from holding OrganiGram Holdings or generate 67.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	78.05%
Values	Daily Returns

OrganiGram Holdings  vs.  Powerbridge Technologies Co

OrganiGram Holdings

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in OrganiGram Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, OrganiGram Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Powerbridge Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Powerbridge Technologies Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with OrganiGram Holdings and Powerbridge Technologies

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

The idea behind OrganiGram Holdings and Powerbridge Technologies Co 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 Transaction History module to view history of all your transactions and understand their impact on performance.