Correlation Between Flowr Corp and Leef Brands
Can any of the company-specific risk be diversified away by investing in both Flowr Corp and Leef Brands 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 Leef Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flowr Corp and Leef Brands, you can compare the effects of market volatilities on Flowr Corp and Leef Brands 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 Leef Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowr Corp and Leef Brands.
Diversification Opportunities for Flowr Corp and Leef Brands
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flowr and Leef is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Flowr Corp and Leef Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leef Brands 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 Leef Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leef Brands has no effect on the direction of Flowr Corp i.e., Flowr Corp and Leef Brands go up and down completely randomly.
Pair Corralation between Flowr Corp and Leef Brands
If you would invest 15.00 in Leef Brands on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Leef Brands or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.91% |
| Values | Daily Returns |
Flowr Corp vs. Leef Brands
Performance |
| Timeline |
| Flowr Corp |
| Leef Brands |
Flowr Corp and Leef Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flowr Corp and Leef Brands
The main advantage of trading using opposite Flowr Corp and Leef Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowr Corp position performs unexpectedly, Leef Brands 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 Leef Brands will offset losses from the drop in Leef Brands' long position.| Flowr Corp vs. THC Therapeutics | Flowr Corp vs. Elixinol Global | Flowr Corp vs. Eisai Co | Flowr Corp vs. Mc Endvrs |
| Leef Brands vs. Apple Inc | Leef Brands vs. Microsoft | Leef Brands vs. Alphabet Inc Class C | Leef Brands vs. Meta Platforms |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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