Correlation Between Benchmark Botanics and Flowr Corp
Can any of the company-specific risk be diversified away by investing in both Benchmark Botanics 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 Benchmark Botanics and Flowr Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Botanics and Flowr Corp, you can compare the effects of market volatilities on Benchmark Botanics 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 Benchmark Botanics with a short position of Flowr Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Botanics and Flowr Corp.
Diversification Opportunities for Benchmark Botanics and Flowr Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benchmark and Flowr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Botanics and Flowr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowr Corp and Benchmark Botanics 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 Benchmark Botanics 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 Benchmark Botanics i.e., Benchmark Botanics and Flowr Corp go up and down completely randomly.
Pair Corralation between Benchmark Botanics and Flowr Corp
If you would invest 0.00 in Flowr Corp on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Flowr Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
Benchmark Botanics vs. Flowr Corp
Performance |
| Timeline |
| Benchmark Botanics |
| Flowr Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Benchmark Botanics and Flowr Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Botanics and Flowr Corp
The main advantage of trading using opposite Benchmark Botanics and Flowr Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Botanics 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.| Benchmark Botanics vs. Speakeasy Cannabis Club | Benchmark Botanics vs. City View Green | Benchmark Botanics vs. BC Craft Supply | Benchmark Botanics vs. Ravenquest Biomed |
| Flowr Corp vs. Cann American Corp | Flowr Corp vs. Speakeasy Cannabis Club | Flowr Corp vs. Benchmark Botanics | Flowr Corp vs. Link Reservations |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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