Correlation Between Trulieve Cannabis and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Trulieve Cannabis and SCOR PK 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 SCOR PK 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 SCOR PK, you can compare the effects of market volatilities on Trulieve Cannabis and SCOR PK 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 SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trulieve Cannabis and SCOR PK.
Diversification Opportunities for Trulieve Cannabis and SCOR PK
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trulieve and SCOR is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Trulieve Cannabis Corp and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK 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 SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Trulieve Cannabis i.e., Trulieve Cannabis and SCOR PK go up and down completely randomly.
Pair Corralation between Trulieve Cannabis and SCOR PK
Assuming the 90 days horizon Trulieve Cannabis Corp is expected to generate 3.16 times more return on investment than SCOR PK. However, Trulieve Cannabis is 3.16 times more volatile than SCOR PK. It trades about 0.02 of its potential returns per unit of risk. SCOR PK is currently generating about -0.03 per unit of risk. If you would invest 1,305 in Trulieve Cannabis Corp on February 3, 2024 and sell it today you would lose (65.00) from holding Trulieve Cannabis Corp or give up 4.98% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Trulieve Cannabis Corp vs. SCOR PK
Performance |
Timeline |
Trulieve Cannabis Corp |
SCOR PK |
Trulieve Cannabis and SCOR PK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Trulieve Cannabis and SCOR PK
The main advantage of trading using opposite Trulieve Cannabis and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trulieve Cannabis position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.Trulieve Cannabis vs. Kiaro Holdings Corp | Trulieve Cannabis vs. GABY Inc | Trulieve Cannabis vs. Nova Cannabis | Trulieve Cannabis vs. Fire Flower Holdings |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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