Correlation Between Nova Cannabis and Fire Flower
Can any of the company-specific risk be diversified away by investing in both Nova Cannabis and Fire Flower 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 Nova Cannabis and Fire Flower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nova Cannabis and Fire Flower Holdings, you can compare the effects of market volatilities on Nova Cannabis and Fire Flower 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 Nova Cannabis with a short position of Fire Flower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nova Cannabis and Fire Flower.
Diversification Opportunities for Nova Cannabis and Fire Flower
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nova and Fire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nova Cannabis and Fire Flower Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fire Flower Holdings and Nova Cannabis 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 Nova Cannabis are associated (or correlated) with Fire Flower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fire Flower Holdings has no effect on the direction of Nova Cannabis i.e., Nova Cannabis and Fire Flower go up and down completely randomly.
Pair Corralation between Nova Cannabis and Fire Flower
If you would invest 61.00 in Nova Cannabis on September 2, 2024 and sell it today you would earn a total of 65.00 from holding Nova Cannabis or generate 106.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 66.97% |
| Values | Daily Returns |
Nova Cannabis vs. Fire Flower Holdings
Performance |
| Timeline |
| Nova Cannabis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fire Flower Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nova Cannabis and Fire Flower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nova Cannabis and Fire Flower
The main advantage of trading using opposite Nova Cannabis and Fire Flower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nova Cannabis position performs unexpectedly, Fire Flower 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 Fire Flower will offset losses from the drop in Fire Flower's long position.| Nova Cannabis vs. Leafly Holdings | Nova Cannabis vs. Leafly Holdings | Nova Cannabis vs. SunLink Health Systems | Nova Cannabis vs. Kiaro Holdings Corp |
| Fire Flower vs. Leafly Holdings | Fire Flower vs. Kiaro Holdings Corp | Fire Flower vs. Allstar Health Brands | Fire Flower vs. Leafly Holdings |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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