Correlation Between Flora Growth and Blueberries Medical
Can any of the company-specific risk be diversified away by investing in both Flora Growth and Blueberries Medical 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 Blueberries Medical 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 Blueberries Medical Corp, you can compare the effects of market volatilities on Flora Growth and Blueberries Medical 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 Blueberries Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flora Growth and Blueberries Medical.
Diversification Opportunities for Flora Growth and Blueberries Medical
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flora and Blueberries is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Flora Growth Corp and Blueberries Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blueberries Medical Corp 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 Blueberries Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blueberries Medical Corp has no effect on the direction of Flora Growth i.e., Flora Growth and Blueberries Medical go up and down completely randomly.
Pair Corralation between Flora Growth and Blueberries Medical
Given the investment horizon of 90 days Flora Growth is expected to generate 2.01 times less return on investment than Blueberries Medical. But when comparing it to its historical volatility, Flora Growth Corp is 2.17 times less risky than Blueberries Medical. It trades about 0.07 of its potential returns per unit of risk. Blueberries Medical Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.49 in Blueberries Medical Corp on August 29, 2024 and sell it today you would lose (0.14) from holding Blueberries Medical Corp or give up 9.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flora Growth Corp vs. Blueberries Medical Corp
Performance |
| Timeline |
| Flora Growth Corp |
| Blueberries Medical Corp |
Flora Growth and Blueberries Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flora Growth and Blueberries Medical
The main advantage of trading using opposite Flora Growth and Blueberries Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flora Growth position performs unexpectedly, Blueberries Medical 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 Blueberries Medical will offset losses from the drop in Blueberries Medical's long position.| Flora Growth vs. Phibro Animal Health | Flora Growth vs. Procaps Group SA | Flora Growth vs. Amphastar P | Flora Growth vs. Alkermes Plc |
| Blueberries Medical vs. Speakeasy Cannabis Club | Blueberries Medical vs. City View Green | Blueberries Medical vs. Benchmark Botanics | Blueberries Medical vs. BC Craft Supply |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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