Correlation Between Sohm and Maple Leaf

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

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

Diversification Opportunities for Sohm and Maple Leaf

0.0

Correlation Coefficient

Sohm  Maple Leaf

Pay attention - limited upside

The 3 months correlation between Sohm and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sohm Inc and Maple Leaf Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Green and Sohm 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 Sohm Inc are associated (or correlated) with Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Green has no effect on the direction of Sohm i.e., Sohm and Maple Leaf go up and down completely randomly.

Pair Corralation between Sohm and Maple Leaf

If you would invest  1.40  in Maple Leaf Green on May 11, 2025 and sell it today you would lose (0.20) from holding Maple Leaf Green or give up 14.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sohm Inc  vs.  Maple Leaf Green

Sohm Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Sohm Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Sohm is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Maple Leaf Green

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Maple Leaf Green are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal technical and fundamental indicators, Maple Leaf reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sohm and Maple Leaf

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

The idea behind Sohm Inc and Maple Leaf Green 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.