Correlation Between Flora Growth and Oragenics
Can any of the company-specific risk be diversified away by investing in both Flora Growth and Oragenics 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 Oragenics 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 Oragenics, you can compare the effects of market volatilities on Flora Growth and Oragenics 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 Oragenics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flora Growth and Oragenics.
Diversification Opportunities for Flora Growth and Oragenics
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flora and Oragenics is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Flora Growth Corp and Oragenics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oragenics 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 Oragenics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oragenics has no effect on the direction of Flora Growth i.e., Flora Growth and Oragenics go up and down completely randomly.
Pair Corralation between Flora Growth and Oragenics
Given the investment horizon of 90 days Flora Growth Corp is expected to generate 1.11 times more return on investment than Oragenics. However, Flora Growth is 1.11 times more volatile than Oragenics. It trades about 0.31 of its potential returns per unit of risk. Oragenics is currently generating about -0.01 per unit of risk. If you would invest 119.00 in Flora Growth Corp on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Flora Growth Corp or generate 45.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flora Growth Corp vs. Oragenics
Performance |
| Timeline |
| Flora Growth Corp |
| Oragenics |
Flora Growth and Oragenics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flora Growth and Oragenics
The main advantage of trading using opposite Flora Growth and Oragenics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flora Growth position performs unexpectedly, Oragenics 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 Oragenics will offset losses from the drop in Oragenics' long position.| Flora Growth vs. Clever Leaves Holdings | Flora Growth vs. Painreform | Flora Growth vs. INC Research Holdings | Flora Growth vs. Lowell Farms |
| Oragenics vs. Equillium | Oragenics vs. DiaMedica Therapeutics | Oragenics vs. Valneva SE ADR | Oragenics vs. Vivani Medical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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