Correlation Between 4Front Ventures and Juva Life
Can any of the company-specific risk be diversified away by investing in both 4Front Ventures and Juva Life 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 4Front Ventures and Juva Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4Front Ventures Corp and Juva Life, you can compare the effects of market volatilities on 4Front Ventures and Juva Life 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 4Front Ventures with a short position of Juva Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Front Ventures and Juva Life.
Diversification Opportunities for 4Front Ventures and Juva Life
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 4Front and Juva is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding 4Front Ventures Corp and Juva Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juva Life and 4Front Ventures 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 4Front Ventures Corp are associated (or correlated) with Juva Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juva Life has no effect on the direction of 4Front Ventures i.e., 4Front Ventures and Juva Life go up and down completely randomly.
Pair Corralation between 4Front Ventures and Juva Life
Assuming the 90 days horizon 4Front Ventures is expected to generate 376.18 times less return on investment than Juva Life. But when comparing it to its historical volatility, 4Front Ventures Corp is 15.61 times less risky than Juva Life. It trades about 0.01 of its potential returns per unit of risk. Juva Life is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4.20 in Juva Life on September 12, 2024 and sell it today you would lose (4.20) from holding Juva Life or give up 100.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.7% |
Values | Daily Returns |
4Front Ventures Corp vs. Juva Life
Performance |
Timeline |
4Front Ventures Corp |
Juva Life |
4Front Ventures and Juva Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 4Front Ventures and Juva Life
The main advantage of trading using opposite 4Front Ventures and Juva Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Front Ventures position performs unexpectedly, Juva Life 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 Juva Life will offset losses from the drop in Juva Life's long position.4Front Ventures vs. Goodness Growth Holdings | 4Front Ventures vs. Body and Mind | 4Front Ventures vs. Rubicon Organics | 4Front Ventures vs. CLS Holdings USA |
Juva Life vs. 4Front Ventures Corp | Juva Life vs. Khiron Life Sciences | Juva Life vs. BellRock Brands | Juva Life vs. Elixinol Global |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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