Correlation Between Fire Flower and Nova Cannabis
Can any of the company-specific risk be diversified away by investing in both Fire Flower and Nova Cannabis 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 Fire Flower and Nova Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fire Flower Holdings and Nova Cannabis, you can compare the effects of market volatilities on Fire Flower and Nova Cannabis 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 Fire Flower with a short position of Nova Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fire Flower and Nova Cannabis.
Diversification Opportunities for Fire Flower and Nova Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fire and Nova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fire Flower Holdings and Nova Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Cannabis and Fire Flower 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 Fire Flower Holdings are associated (or correlated) with Nova Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Cannabis has no effect on the direction of Fire Flower i.e., Fire Flower and Nova Cannabis go up and down completely randomly.
Pair Corralation between Fire Flower and Nova Cannabis
If you would invest 61.00 in Nova Cannabis on September 2, 2024 and sell it today you would earn a total of 65.00 from holding Nova Cannabis or generate 106.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 66.97% |
| Values | Daily Returns |
Fire Flower Holdings vs. Nova Cannabis
Performance |
| Timeline |
| Fire Flower Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nova Cannabis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fire Flower and Nova Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fire Flower and Nova Cannabis
The main advantage of trading using opposite Fire Flower and Nova Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fire Flower position performs unexpectedly, Nova Cannabis 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 Nova Cannabis will offset losses from the drop in Nova Cannabis' long position.| Fire Flower vs. Leafly Holdings | Fire Flower vs. Kiaro Holdings Corp | Fire Flower vs. Allstar Health Brands | Fire Flower vs. Leafly Holdings |
| Nova Cannabis vs. Leafly Holdings | Nova Cannabis vs. Leafly Holdings | Nova Cannabis vs. SunLink Health Systems | Nova Cannabis vs. Kiaro Holdings Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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