Correlation Between Flora Growth and KERN Old
Can any of the company-specific risk be diversified away by investing in both Flora Growth and KERN Old 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 KERN Old 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 KERN Old, you can compare the effects of market volatilities on Flora Growth and KERN Old 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 KERN Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flora Growth and KERN Old.
Diversification Opportunities for Flora Growth and KERN Old
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flora and KERN is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Flora Growth Corp and KERN Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERN Old 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 KERN Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERN Old has no effect on the direction of Flora Growth i.e., Flora Growth and KERN Old go up and down completely randomly.
Pair Corralation between Flora Growth and KERN Old
Given the investment horizon of 90 days Flora Growth Corp is expected to under-perform the KERN Old. In addition to that, Flora Growth is 1.14 times more volatile than KERN Old. It trades about 0.0 of its total potential returns per unit of risk. KERN Old is currently generating about 0.0 per unit of volatility. If you would invest 89.00 in KERN Old on August 28, 2024 and sell it today you would lose (28.00) from holding KERN Old or give up 31.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.65% |
| Values | Daily Returns |
Flora Growth Corp vs. KERN Old
Performance |
| Timeline |
| Flora Growth Corp |
| KERN Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Flora Growth and KERN Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flora Growth and KERN Old
The main advantage of trading using opposite Flora Growth and KERN Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flora Growth position performs unexpectedly, KERN Old 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 KERN Old will offset losses from the drop in KERN Old's long position.| Flora Growth vs. Eliem Therapeutics | Flora Growth vs. Scpharmaceuticals | Flora Growth vs. Milestone Pharmaceuticals | Flora Growth vs. Seres Therapeutics |
| KERN Old vs. Healthcare Triangle | KERN Old vs. Bullfrog AI Holdings, | KERN Old vs. EUDA Health Holdings | KERN Old vs. Mangoceuticals, Common Stock |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |