Correlation Between Alkermes Plc and Flora Growth
Can any of the company-specific risk be diversified away by investing in both Alkermes Plc 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 Alkermes Plc and Flora Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkermes Plc and Flora Growth Corp, you can compare the effects of market volatilities on Alkermes Plc 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 Alkermes Plc with a short position of Flora Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkermes Plc and Flora Growth.
Diversification Opportunities for Alkermes Plc and Flora Growth
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alkermes and Flora is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Alkermes Plc 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 Alkermes Plc 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 Alkermes Plc 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 Alkermes Plc i.e., Alkermes Plc and Flora Growth go up and down completely randomly.
Pair Corralation between Alkermes Plc and Flora Growth
Given the investment horizon of 90 days Alkermes Plc is expected to generate 0.29 times more return on investment than Flora Growth. However, Alkermes Plc is 3.5 times less risky than Flora Growth. It trades about -0.01 of its potential returns per unit of risk. Flora Growth Corp is currently generating about -0.04 per unit of risk. If you would invest 2,810 in Alkermes Plc on August 23, 2024 and sell it today you would lose (40.00) from holding Alkermes Plc or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkermes Plc vs. Flora Growth Corp
Performance |
| Timeline |
| Alkermes Plc |
| Flora Growth Corp |
Alkermes Plc and Flora Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkermes Plc and Flora Growth
The main advantage of trading using opposite Alkermes Plc and Flora Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkermes Plc 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.| Alkermes Plc vs. Intracellular Th | Alkermes Plc vs. Ironwood Pharmaceuticals | Alkermes Plc vs. Pacira BioSciences, | Alkermes Plc vs. ANI Pharmaceuticals |
| Flora Growth vs. Catalent | Flora Growth vs. Amphastar P | Flora Growth vs. ANI Pharmaceuticals | Flora Growth vs. Alkermes Plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |