Correlation Between Flora Growth and Phibro Animal
Can any of the company-specific risk be diversified away by investing in both Flora Growth and Phibro Animal 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 Phibro Animal 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 Phibro Animal Health, you can compare the effects of market volatilities on Flora Growth and Phibro Animal 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 Phibro Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flora Growth and Phibro Animal.
Diversification Opportunities for Flora Growth and Phibro Animal
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flora and Phibro is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Flora Growth Corp and Phibro Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phibro Animal Health 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 Phibro Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phibro Animal Health has no effect on the direction of Flora Growth i.e., Flora Growth and Phibro Animal go up and down completely randomly.
Pair Corralation between Flora Growth and Phibro Animal
Given the investment horizon of 90 days Flora Growth Corp is expected to under-perform the Phibro Animal. In addition to that, Flora Growth is 3.82 times more volatile than Phibro Animal Health. It trades about -0.06 of its total potential returns per unit of risk. Phibro Animal Health is currently generating about 0.03 per unit of volatility. If you would invest 2,350 in Phibro Animal Health on August 30, 2024 and sell it today you would earn a total of 23.00 from holding Phibro Animal Health or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flora Growth Corp vs. Phibro Animal Health
Performance |
| Timeline |
| Flora Growth Corp |
| Phibro Animal Health |
Flora Growth and Phibro Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flora Growth and Phibro Animal
The main advantage of trading using opposite Flora Growth and Phibro Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flora Growth position performs unexpectedly, Phibro Animal 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 Phibro Animal will offset losses from the drop in Phibro Animal's long position.| Flora Growth vs. Ikena Oncology | Flora Growth vs. Eliem Therapeutics | Flora Growth vs. HCW Biologics | Flora Growth vs. RenovoRx |
| Phibro Animal vs. Emergent Biosolutions | Phibro Animal vs. Bausch Health Companies | Phibro Animal vs. Neurocrine Biosciences | Phibro Animal vs. Teva Pharma Industries |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |