Correlation Between Flora Growth and Champions Oncology
Can any of the company-specific risk be diversified away by investing in both Flora Growth and Champions Oncology 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 Champions Oncology 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 Champions Oncology, you can compare the effects of market volatilities on Flora Growth and Champions Oncology 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 Champions Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flora Growth and Champions Oncology.
Diversification Opportunities for Flora Growth and Champions Oncology
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flora and Champions is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Flora Growth Corp and Champions Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champions Oncology 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 Champions Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champions Oncology has no effect on the direction of Flora Growth i.e., Flora Growth and Champions Oncology go up and down completely randomly.
Pair Corralation between Flora Growth and Champions Oncology
Given the investment horizon of 90 days Flora Growth Corp is expected to under-perform the Champions Oncology. But the stock apears to be less risky and, when comparing its historical volatility, Flora Growth Corp is 2.23 times less risky than Champions Oncology. The stock trades about -0.72 of its potential returns per unit of risk. The Champions Oncology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 974.00 in Champions Oncology on November 4, 2024 and sell it today you would earn a total of 125.00 from holding Champions Oncology or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flora Growth Corp vs. Champions Oncology
Performance |
| Timeline |
| Flora Growth Corp |
| Champions Oncology |
Flora Growth and Champions Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flora Growth and Champions Oncology
The main advantage of trading using opposite Flora Growth and Champions Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flora Growth position performs unexpectedly, Champions Oncology 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 Champions Oncology will offset losses from the drop in Champions Oncology's long position.| Flora Growth vs. Clever Leaves Holdings | Flora Growth vs. Painreform | Flora Growth vs. INC Research Holdings | Flora Growth vs. Lowell Farms |
| Champions Oncology vs. Molecular Partners AG | Champions Oncology vs. MediciNova | Champions Oncology vs. Anebulo Pharmaceuticals | Champions Oncology vs. Shattuck Labs |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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