Correlation Between Flowr Corp and Medicure
Can any of the company-specific risk be diversified away by investing in both Flowr Corp and Medicure 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 Medicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flowr Corp and Medicure, you can compare the effects of market volatilities on Flowr Corp and Medicure 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 Medicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowr Corp and Medicure.
Diversification Opportunities for Flowr Corp and Medicure
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Flowr and Medicure is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Flowr Corp and Medicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicure 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 Medicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicure has no effect on the direction of Flowr Corp i.e., Flowr Corp and Medicure go up and down completely randomly.
Pair Corralation between Flowr Corp and Medicure
If you would invest 63.00 in Medicure on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Medicure or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
Flowr Corp vs. Medicure
Performance |
| Timeline |
| Flowr Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Medicure |
Flowr Corp and Medicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flowr Corp and Medicure
The main advantage of trading using opposite Flowr Corp and Medicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowr Corp position performs unexpectedly, Medicure 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 Medicure will offset losses from the drop in Medicure'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 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |