Correlation Between OrganiGram Holdings and Element Fleet

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

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

Diversification Opportunities for OrganiGram Holdings and Element Fleet

-0.32

Correlation Coefficient

OrganiGram Holdings  Element Fleet

Very good diversification

The 3 months correlation between OrganiGram and Element is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding OrganiGram Holdings and Element Fleet Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Element Fleet Management 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 Element Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Element Fleet Management has no effect on the direction of OrganiGram Holdings i.e., OrganiGram Holdings and Element Fleet go up and down completely randomly.

Pair Corralation between OrganiGram Holdings and Element Fleet

Assuming the 90 days trading horizon OrganiGram Holdings is expected to under-perform the Element Fleet. In addition to that, OrganiGram Holdings is 2.3 times more volatile than Element Fleet Management. It trades about -0.09 of its total potential returns per unit of risk. Element Fleet Management is currently generating about 0.09 per unit of volatility. If you would invest  2,745  in Element Fleet Management on September 5, 2024 and sell it today you would earn a total of  178.00  from holding Element Fleet Management or generate 6.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

OrganiGram Holdings  vs.  Element Fleet Management

OrganiGram Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OrganiGram Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Element Fleet Management

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Element Fleet Management are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Element Fleet may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with OrganiGram Holdings and Element Fleet

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

The idea behind OrganiGram Holdings and Element Fleet Management 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.