Correlation Between CordovaCann Corp and Avricore Health

Can any of the company-specific risk be diversified away by investing in both CordovaCann Corp and Avricore Health 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 CordovaCann Corp and Avricore Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CordovaCann Corp and Avricore Health, you can compare the effects of market volatilities on CordovaCann Corp and Avricore Health 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 CordovaCann Corp with a short position of Avricore Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of CordovaCann Corp and Avricore Health.

Diversification Opportunities for CordovaCann Corp and Avricore Health

-0.12

Correlation Coefficient

CordovaCann Corp  Avricore Health

Good diversification

The 3 months correlation between CordovaCann and Avricore is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CordovaCann Corp and Avricore Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avricore Health and CordovaCann Corp 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 CordovaCann Corp are associated (or correlated) with Avricore Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avricore Health has no effect on the direction of CordovaCann Corp i.e., CordovaCann Corp and Avricore Health go up and down completely randomly.

Pair Corralation between CordovaCann Corp and Avricore Health

Assuming the 90 days horizon CordovaCann Corp is expected to generate 95.03 times less return on investment than Avricore Health. But when comparing it to its historical volatility, CordovaCann Corp is 1.85 times less risky than Avricore Health. It trades about 0.0 of its potential returns per unit of risk. Avricore Health is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  5.00  in Avricore Health on May 4, 2025 and sell it today you would earn a total of  1.81  from holding Avricore Health or generate 36.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

CordovaCann Corp  vs.  Avricore Health

CordovaCann Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days CordovaCann Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, CordovaCann Corp is not utilizing all of its potentials. The new stock price disturbance, may contribute to mid-run losses for the stockholders.

Avricore Health

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Avricore Health are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Avricore Health reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CordovaCann Corp and Avricore Health

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

The idea behind CordovaCann Corp and Avricore Health 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.