Correlation Between AgriFORCE Growing and Flora Growth
Can any of the company-specific risk be diversified away by investing in both AgriFORCE Growing and Flora Growth 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 AgriFORCE Growing and Flora Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgriFORCE Growing Systems and Flora Growth Corp, you can compare the effects of market volatilities on AgriFORCE Growing and Flora Growth 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 AgriFORCE Growing with a short position of Flora Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriFORCE Growing and Flora Growth.
Diversification Opportunities for AgriFORCE Growing and Flora Growth
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between AgriFORCE and Flora is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AgriFORCE Growing Systems and Flora Growth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flora Growth Corp and AgriFORCE Growing 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 AgriFORCE Growing Systems are associated (or correlated) with Flora Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flora Growth Corp has no effect on the direction of AgriFORCE Growing i.e., AgriFORCE Growing and Flora Growth go up and down completely randomly.
Pair Corralation between AgriFORCE Growing and Flora Growth
Given the investment horizon of 90 days AgriFORCE Growing Systems is expected to under-perform the Flora Growth. In addition to that, AgriFORCE Growing is 1.01 times more volatile than Flora Growth Corp. It trades about -0.13 of its total potential returns per unit of risk. Flora Growth Corp is currently generating about 0.0 per unit of volatility. If you would invest 896.00 in Flora Growth Corp on August 28, 2024 and sell it today you would lose (741.00) from holding Flora Growth Corp or give up 82.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AgriFORCE Growing Systems vs. Flora Growth Corp
Performance |
| Timeline |
| AgriFORCE Growing Systems |
| Flora Growth Corp |
AgriFORCE Growing and Flora Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgriFORCE Growing and Flora Growth
The main advantage of trading using opposite AgriFORCE Growing and Flora Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriFORCE Growing position performs unexpectedly, Flora Growth 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 Flora Growth will offset losses from the drop in Flora Growth's long position.| AgriFORCE Growing vs. Limoneira Co | AgriFORCE Growing vs. Forafric Global PLC | AgriFORCE Growing vs. Australian Agricultural | AgriFORCE Growing vs. NaturalShrimp |
| Flora Growth vs. Eliem Therapeutics | Flora Growth vs. Scpharmaceuticals | Flora Growth vs. Milestone Pharmaceuticals | Flora Growth vs. Seres Therapeutics |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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