Correlation Between Elixinol Global and Flowr Corp
Can any of the company-specific risk be diversified away by investing in both Elixinol Global 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 Elixinol Global and Flowr Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Flowr Corp, you can compare the effects of market volatilities on Elixinol Global 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 Elixinol Global with a short position of Flowr Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Flowr Corp.
Diversification Opportunities for Elixinol Global and Flowr Corp
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elixinol and Flowr is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Flowr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowr Corp and Elixinol Global 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 Elixinol Global 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 Elixinol Global i.e., Elixinol Global and Flowr Corp go up and down completely randomly.
Pair Corralation between Elixinol Global and Flowr Corp
If you would invest 0.24 in Elixinol Global on August 24, 2024 and sell it today you would lose (0.01) from holding Elixinol Global or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Elixinol Global vs. Flowr Corp
Performance |
| Timeline |
| Elixinol Global |
| Flowr Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elixinol Global and Flowr Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Flowr Corp
The main advantage of trading using opposite Elixinol Global and Flowr Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global 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.| Elixinol Global vs. Green Cures Botanical | Elixinol Global vs. Rimrock Gold Corp | Elixinol Global vs. Galexxy Holdings | Elixinol Global vs. Indoor Harvest Corp |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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