Correlation Between Flower One and Cann American
Can any of the company-specific risk be diversified away by investing in both Flower One and Cann American 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 Flower One and Cann American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flower One Holdings and Cann American Corp, you can compare the effects of market volatilities on Flower One and Cann American 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 Flower One with a short position of Cann American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flower One and Cann American.
Diversification Opportunities for Flower One and Cann American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flower and Cann is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flower One Holdings and Cann American Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cann American Corp and Flower One 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 Flower One Holdings are associated (or correlated) with Cann American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cann American Corp has no effect on the direction of Flower One i.e., Flower One and Cann American go up and down completely randomly.
Pair Corralation between Flower One and Cann American
If you would invest 0.38 in Cann American Corp on September 4, 2024 and sell it today you would lose (0.08) from holding Cann American Corp or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Flower One Holdings vs. Cann American Corp
Performance |
| Timeline |
| Flower One Holdings |
| Cann American Corp |
Flower One and Cann American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flower One and Cann American
The main advantage of trading using opposite Flower One and Cann American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flower One position performs unexpectedly, Cann American 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 Cann American will offset losses from the drop in Cann American's long position.| Flower One vs. Cann American Corp | Flower One vs. Speakeasy Cannabis Club | Flower One vs. Benchmark Botanics | Flower One vs. Link Reservations |
| Cann American vs. XCPCNL Business Services | Cann American vs. Golden Developing Solutions | Cann American vs. Indo Global Exchange | Cann American vs. Cgrowth Capital |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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