Correlation Between Flora Growth and QLI Old
Can any of the company-specific risk be diversified away by investing in both Flora Growth and QLI 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 QLI 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 QLI Old, you can compare the effects of market volatilities on Flora Growth and QLI 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 QLI Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flora Growth and QLI Old.
Diversification Opportunities for Flora Growth and QLI Old
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flora and QLI is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Flora Growth Corp and QLI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QLI 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 QLI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QLI Old has no effect on the direction of Flora Growth i.e., Flora Growth and QLI Old go up and down completely randomly.
Pair Corralation between Flora Growth and QLI Old
If you would invest 808.00 in QLI Old on November 2, 2024 and sell it today you would earn a total of 0.00 from holding QLI Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Flora Growth Corp vs. QLI Old
Performance |
| Timeline |
| Flora Growth Corp |
| QLI Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Flora Growth and QLI Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flora Growth and QLI Old
The main advantage of trading using opposite Flora Growth and QLI Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flora Growth position performs unexpectedly, QLI 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 QLI Old will offset losses from the drop in QLI Old's long position.| Flora Growth vs. Clever Leaves Holdings | Flora Growth vs. Painreform | Flora Growth vs. INC Research Holdings | Flora Growth vs. Lowell Farms |
| QLI Old vs. Painreform | QLI Old vs. Regencell Bioscience Holdings | QLI Old vs. Procaps Group SA | QLI Old vs. Phibro Animal Health |
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.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |