Correlation Between Flora Growth and Altamira Therapeutics
Can any of the company-specific risk be diversified away by investing in both Flora Growth and Altamira Therapeutics 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 Altamira Therapeutics 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 Altamira Therapeutics, you can compare the effects of market volatilities on Flora Growth and Altamira Therapeutics 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 Altamira Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flora Growth and Altamira Therapeutics.
Diversification Opportunities for Flora Growth and Altamira Therapeutics
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flora and Altamira is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Flora Growth Corp and Altamira Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamira Therapeutics 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 Altamira Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamira Therapeutics has no effect on the direction of Flora Growth i.e., Flora Growth and Altamira Therapeutics go up and down completely randomly.
Pair Corralation between Flora Growth and Altamira Therapeutics
Given the investment horizon of 90 days Flora Growth Corp is expected to generate 1.53 times more return on investment than Altamira Therapeutics. However, Flora Growth is 1.53 times more volatile than Altamira Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Altamira Therapeutics is currently generating about -0.12 per unit of risk. If you would invest 185.00 in Flora Growth Corp on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Flora Growth Corp or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flora Growth Corp vs. Altamira Therapeutics
Performance |
| Timeline |
| Flora Growth Corp |
| Altamira Therapeutics |
Flora Growth and Altamira Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flora Growth and Altamira Therapeutics
The main advantage of trading using opposite Flora Growth and Altamira Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flora Growth position performs unexpectedly, Altamira Therapeutics 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 Altamira Therapeutics will offset losses from the drop in Altamira Therapeutics' long position.| Flora Growth vs. Clever Leaves Holdings | Flora Growth vs. Painreform | Flora Growth vs. INC Research Holdings | Flora Growth vs. Lowell Farms |
| Altamira Therapeutics vs. Pyxis Oncology | Altamira Therapeutics vs. Zura Bio Limited | Altamira Therapeutics vs. Elevation Oncology | Altamira Therapeutics vs. Immix Biopharma |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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