Correlation Between Flora Growth and Painreform
Can any of the company-specific risk be diversified away by investing in both Flora Growth and Painreform 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 Flora Growth and Painreform into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flora Growth Corp and Painreform, you can compare the effects of market volatilities on Flora Growth and Painreform 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 Flora Growth with a short position of Painreform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flora Growth and Painreform.
Diversification Opportunities for Flora Growth and Painreform
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flora and Painreform is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Flora Growth Corp and Painreform in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Painreform and Flora Growth 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 Flora Growth Corp are associated (or correlated) with Painreform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Painreform has no effect on the direction of Flora Growth i.e., Flora Growth and Painreform go up and down completely randomly.
Pair Corralation between Flora Growth and Painreform
Given the investment horizon of 90 days Flora Growth is expected to generate 15.05 times less return on investment than Painreform. But when comparing it to its historical volatility, Flora Growth Corp is 1.19 times less risky than Painreform. It trades about 0.0 of its potential returns per unit of risk. Painreform is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 312.00 in Painreform on December 2, 2024 and sell it today you would earn a total of 3.00 from holding Painreform or generate 0.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Flora Growth Corp vs. Painreform
Performance |
Timeline |
Flora Growth Corp |
Painreform |
Flora Growth and Painreform Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Flora Growth and Painreform
The main advantage of trading using opposite Flora Growth and Painreform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flora Growth position performs unexpectedly, Painreform 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 Painreform will offset losses from the drop in Painreform's long position.Flora Growth vs. Clever Leaves Holdings | Flora Growth vs. Painreform | Flora Growth vs. INC Research Holdings | Flora Growth vs. Lowell Farms |
Painreform vs. Regencell Bioscience Holdings | Painreform vs. Procaps Group SA | Painreform vs. Universe Pharmaceuticals | Painreform vs. Veritas Pharma |
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 CEOs Directory module to screen CEOs from public companies around the world.
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