Correlation Between TAAT Global and Christina Lake

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

By analyzing existing cross correlation between TAAT Global Alternatives and Christina Lake Cannabis, you can compare the effects of market volatilities on TAAT Global and Christina Lake 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 TAAT Global with a short position of Christina Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAAT Global and Christina Lake.

Diversification Opportunities for TAAT Global and Christina Lake

-0.04

Correlation Coefficient

TAAT Global  Christina Lake

Good diversification

The 3 months correlation between TAAT and Christina is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding TAAT Global Alternatives and Christina Lake Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Christina Lake Cannabis and TAAT Global 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 TAAT Global Alternatives are associated (or correlated) with Christina Lake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Christina Lake Cannabis has no effect on the direction of TAAT Global i.e., TAAT Global and Christina Lake go up and down completely randomly.

Pair Corralation between TAAT Global and Christina Lake

Assuming the 90 days horizon TAAT Global Alternatives is expected to generate 0.83 times more return on investment than Christina Lake. However, TAAT Global Alternatives is 1.2 times less risky than Christina Lake. It trades about 0.05 of its potential returns per unit of risk. Christina Lake Cannabis is currently generating about 0.04 per unit of risk. If you would invest  13.00  in TAAT Global Alternatives on May 5, 2025 and sell it today you would lose (1.00) from holding TAAT Global Alternatives or give up 7.69% of portfolio value over 90 days.

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

TAAT Global Alternatives  vs.  Christina Lake Cannabis

TAAT Global Alternatives

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TAAT Global Alternatives are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, TAAT Global reported solid returns over the last few months and may actually be approaching a breakup point.

Christina Lake Cannabis

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Christina Lake Cannabis are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly sluggish technical and fundamental indicators, Christina Lake reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TAAT Global and Christina Lake

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

The idea behind TAAT Global Alternatives and Christina Lake Cannabis 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 Commodity Directory module to find actively traded commodities issued by global exchanges.