Correlation Between KERN Old and Flora Growth
Can any of the company-specific risk be diversified away by investing in both KERN Old and Flora Growth 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 KERN Old and Flora Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KERN Old and Flora Growth Corp, you can compare the effects of market volatilities on KERN Old and Flora Growth 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 KERN Old with a short position of Flora Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of KERN Old and Flora Growth.
Diversification Opportunities for KERN Old and Flora Growth
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KERN and Flora is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding KERN Old and Flora Growth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flora Growth Corp and KERN Old 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 KERN Old are associated (or correlated) with Flora Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flora Growth Corp has no effect on the direction of KERN Old i.e., KERN Old and Flora Growth go up and down completely randomly.
Pair Corralation between KERN Old and Flora Growth
If you would invest 61.00 in KERN Old on August 28, 2024 and sell it today you would earn a total of 0.00 from holding KERN Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
KERN Old vs. Flora Growth Corp
Performance |
| Timeline |
| KERN Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Flora Growth Corp |
KERN Old and Flora Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KERN Old and Flora Growth
The main advantage of trading using opposite KERN Old and Flora Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KERN Old position performs unexpectedly, Flora Growth 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 Flora Growth will offset losses from the drop in Flora Growth's long position.| KERN Old vs. Healthcare Triangle | KERN Old vs. Bullfrog AI Holdings, | KERN Old vs. EUDA Health Holdings | KERN Old vs. Mangoceuticals, Common Stock |
| Flora Growth vs. Eliem Therapeutics | Flora Growth vs. Scpharmaceuticals | Flora Growth vs. Milestone Pharmaceuticals | Flora Growth vs. Seres Therapeutics |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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