Correlation Between Acreage Holdings and Flowr Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Acreage Holdings and Flowr Corp 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 Acreage Holdings and Flowr Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acreage Holdings and Flowr Corp, you can compare the effects of market volatilities on Acreage Holdings and Flowr Corp 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 Acreage Holdings with a short position of Flowr Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acreage Holdings and Flowr Corp.

Diversification Opportunities for Acreage Holdings and Flowr Corp

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Acreage Holdings and Flowr Corp

Assuming the 90 days horizon Acreage Holdings is expected to generate 28.2 times less return on investment than Flowr Corp. But when comparing it to its historical volatility, Acreage Holdings is 8.04 times less risky than Flowr Corp. It trades about 0.02 of its potential returns per unit of risk. Flowr Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1.90  in Flowr Corp on September 29, 2024 and sell it today you would lose (1.90) from holding Flowr Corp or give up 100.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy84.71%
ValuesDaily Returns

Acreage Holdings  vs.  Flowr Corp

 Performance 
       Timeline  
Acreage Holdings 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Acreage Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, Acreage Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Flowr Corp 

Risk-Adjusted Performance

0 of 100

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

Acreage Holdings and Flowr Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Acreage Holdings and Flowr Corp

The main advantage of trading using opposite Acreage Holdings and Flowr Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acreage Holdings position performs unexpectedly, Flowr Corp 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 Flowr Corp will offset losses from the drop in Flowr Corp's long position.
The idea behind Acreage Holdings and Flowr Corp 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.
Check out your portfolio center.
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 Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Bonds Directory
Find actively traded corporate debentures issued by US companies