Correlation Between Flowr Corp and THC Therapeutics
Can any of the company-specific risk be diversified away by investing in both Flowr Corp and THC Therapeutics 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 THC Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flowr Corp and THC Therapeutics, you can compare the effects of market volatilities on Flowr Corp and THC Therapeutics 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 THC Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowr Corp and THC Therapeutics.
Diversification Opportunities for Flowr Corp and THC Therapeutics
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Flowr and THC is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Flowr Corp and THC Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THC Therapeutics 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 THC Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THC Therapeutics has no effect on the direction of Flowr Corp i.e., Flowr Corp and THC Therapeutics go up and down completely randomly.
Pair Corralation between Flowr Corp and THC Therapeutics
If you would invest 0.04 in THC Therapeutics on August 29, 2024 and sell it today you would earn a total of 0.01 from holding THC Therapeutics or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Flowr Corp vs. THC Therapeutics
Performance |
| Timeline |
| Flowr Corp |
| THC Therapeutics |
Flowr Corp and THC Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flowr Corp and THC Therapeutics
The main advantage of trading using opposite Flowr Corp and THC Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowr Corp position performs unexpectedly, THC Therapeutics 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 THC Therapeutics will offset losses from the drop in THC Therapeutics' long position.| Flowr Corp vs. THC Therapeutics | Flowr Corp vs. Elixinol Global | Flowr Corp vs. Eisai Co | Flowr Corp vs. Mc Endvrs |
| THC Therapeutics vs. Link Reservations | THC Therapeutics vs. MERCK Kommanditgesellschaft auf | THC Therapeutics vs. Greater Cannabis | THC Therapeutics vs. Global Hemp Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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