Correlation Between Flowr Corp and City View
Can any of the company-specific risk be diversified away by investing in both Flowr Corp and City View 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 Flowr Corp and City View into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flowr Corp and City View Green, you can compare the effects of market volatilities on Flowr Corp and City View 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 Flowr Corp with a short position of City View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowr Corp and City View.
Diversification Opportunities for Flowr Corp and City View
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flowr and City is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Flowr Corp and City View Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City View Green and Flowr Corp 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 Flowr Corp are associated (or correlated) with City View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City View Green has no effect on the direction of Flowr Corp i.e., Flowr Corp and City View go up and down completely randomly.
Pair Corralation between Flowr Corp and City View
If you would invest 0.69 in City View Green on September 4, 2024 and sell it today you would earn a total of 0.66 from holding City View Green or generate 95.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Flowr Corp vs. City View Green
Performance |
| Timeline |
| Flowr Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| City View Green |
Flowr Corp and City View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flowr Corp and City View
The main advantage of trading using opposite Flowr Corp and City View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowr Corp position performs unexpectedly, City View 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 City View will offset losses from the drop in City View's long position.| Flowr Corp vs. Cann American Corp | Flowr Corp vs. Speakeasy Cannabis Club | Flowr Corp vs. Benchmark Botanics | Flowr Corp vs. Link Reservations |
| City View vs. Cann American Corp | City View vs. Speakeasy Cannabis Club | City View vs. Benchmark Botanics | City View vs. Link Reservations |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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