Correlation Between Acreage Holdings and Flowr Corp
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 43.53 times less return on investment than Flowr Corp. But when comparing it to its historical volatility, Acreage Holdings is 8.24 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 0.09 of returns per unit of risk over similar time horizon. If you would invest 1.90 in Flowr Corp on August 24, 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 Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 82.22% |
| Values | Daily Returns |
Acreage Holdings vs. Flowr Corp
Performance |
| Timeline |
| Acreage Holdings |
| Flowr Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
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.| Acreage Holdings vs. AYR Strategies Class | Acreage Holdings vs. RIV Capital | Acreage Holdings vs. Verano Holdings Corp | Acreage Holdings vs. BZAM |
| Flowr Corp vs. THC Therapeutics | Flowr Corp vs. Elixinol Global | Flowr Corp vs. Eisai Co | Flowr Corp vs. Mc Endvrs |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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