Correlation Between Flora Growth and Azenta
Can any of the company-specific risk be diversified away by investing in both Flora Growth and Azenta 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 Flora Growth and Azenta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flora Growth Corp and Azenta Inc, you can compare the effects of market volatilities on Flora Growth and Azenta 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 Flora Growth with a short position of Azenta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flora Growth and Azenta.
Diversification Opportunities for Flora Growth and Azenta
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flora and Azenta is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Flora Growth Corp and Azenta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azenta Inc and Flora Growth 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 Flora Growth Corp are associated (or correlated) with Azenta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azenta Inc has no effect on the direction of Flora Growth i.e., Flora Growth and Azenta go up and down completely randomly.
Pair Corralation between Flora Growth and Azenta
Given the investment horizon of 90 days Flora Growth Corp is expected to under-perform the Azenta. In addition to that, Flora Growth is 3.03 times more volatile than Azenta Inc. It trades about 0.0 of its total potential returns per unit of risk. Azenta Inc is currently generating about -0.01 per unit of volatility. If you would invest 6,016 in Azenta Inc on August 24, 2024 and sell it today you would lose (1,500) from holding Azenta Inc or give up 24.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flora Growth Corp vs. Azenta Inc
Performance |
| Timeline |
| Flora Growth Corp |
| Azenta Inc |
Flora Growth and Azenta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flora Growth and Azenta
The main advantage of trading using opposite Flora Growth and Azenta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flora Growth position performs unexpectedly, Azenta 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 Azenta will offset losses from the drop in Azenta's long position.| Flora Growth vs. Clever Leaves Holdings | Flora Growth vs. Painreform | Flora Growth vs. INC Research Holdings | Flora Growth vs. Lowell Farms |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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