Correlation Between Maple Leaf and Sohm

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

By analyzing existing cross correlation between Maple Leaf Green and Sohm Inc, you can compare the effects of market volatilities on Maple Leaf and Sohm 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 Maple Leaf with a short position of Sohm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Sohm.

Diversification Opportunities for Maple Leaf and Sohm

0.2

Correlation Coefficient

Maple Leaf  Sohm

Modest diversification

The 3 months correlation between Maple and Sohm is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Green and Sohm Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sohm Inc and Maple Leaf 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 Maple Leaf Green are associated (or correlated) with Sohm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sohm Inc has no effect on the direction of Maple Leaf i.e., Maple Leaf and Sohm go up and down completely randomly.

Pair Corralation between Maple Leaf and Sohm

Assuming the 90 days horizon Maple Leaf Green is expected to generate 5.93 times more return on investment than Sohm. However, Maple Leaf is 5.93 times more volatile than Sohm Inc. It trades about 0.13 of its potential returns per unit of risk. Sohm Inc is currently generating about 0.03 per unit of risk. If you would invest  1.80  in Maple Leaf Green on July 6, 2025 and sell it today you would lose (0.90) from holding Maple Leaf Green or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Maple Leaf Green  vs.  Sohm Inc

Maple Leaf Green

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Maple Leaf Green are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Maple Leaf reported solid returns over the last few months and may actually be approaching a breakup point.

Sohm Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sohm Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak primary indicators, Sohm displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maple Leaf and Sohm

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

The idea behind Maple Leaf Green and Sohm Inc 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.