Correlation Between OrganiGram Holdings and Dream Residential

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

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

Diversification Opportunities for OrganiGram Holdings and Dream Residential

0.61

Correlation Coefficient

OrganiGram Holdings  Dream Residential

Poor diversification

The 3 months correlation between OrganiGram and Dream is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding OrganiGram Holdings and Dream Residential Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Residential Real 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 Dream Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Residential Real has no effect on the direction of OrganiGram Holdings i.e., OrganiGram Holdings and Dream Residential go up and down completely randomly.

Pair Corralation between OrganiGram Holdings and Dream Residential

Assuming the 90 days trading horizon OrganiGram Holdings is expected to generate 1.7 times more return on investment than Dream Residential. However, OrganiGram Holdings is 1.7 times more volatile than Dream Residential Real. It trades about 0.17 of its potential returns per unit of risk. Dream Residential Real is currently generating about 0.11 per unit of risk. If you would invest  151.00  in OrganiGram Holdings on April 23, 2025 and sell it today you would earn a total of  48.00  from holding OrganiGram Holdings or generate 31.79% return on investment over 90 days.

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

OrganiGram Holdings  vs.  Dream Residential Real

OrganiGram Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in OrganiGram Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal forward indicators, OrganiGram Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Dream Residential Real

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dream Residential Real are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Dream Residential may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with OrganiGram Holdings and Dream Residential

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

The idea behind OrganiGram Holdings and Dream Residential Real 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.