Correlation Between Eisai Co and Flowr Corp
Can any of the company-specific risk be diversified away by investing in both Eisai Co 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 Eisai Co and Flowr Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eisai Co and Flowr Corp, you can compare the effects of market volatilities on Eisai Co 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 Eisai Co with a short position of Flowr Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eisai Co and Flowr Corp.
Diversification Opportunities for Eisai Co and Flowr Corp
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eisai and Flowr is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Eisai Co and Flowr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowr Corp and Eisai Co 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 Eisai Co 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 Eisai Co i.e., Eisai Co and Flowr Corp go up and down completely randomly.
Pair Corralation between Eisai Co and Flowr Corp
If you would invest 0.00 in Flowr Corp on August 29, 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 | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Eisai Co vs. Flowr Corp
Performance |
| Timeline |
| Eisai Co |
| Flowr Corp |
Eisai Co and Flowr Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eisai Co and Flowr Corp
The main advantage of trading using opposite Eisai Co and Flowr Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eisai Co 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.| Eisai Co vs. Apple Inc | Eisai Co vs. Microsoft | Eisai Co vs. Alphabet Inc Class C | Eisai Co vs. Meta Platforms |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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