Correlation Between Painreform and Flora Growth
Can any of the company-specific risk be diversified away by investing in both Painreform 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 Painreform and Flora Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Painreform and Flora Growth Corp, you can compare the effects of market volatilities on Painreform 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 Painreform with a short position of Flora Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Painreform and Flora Growth.
Diversification Opportunities for Painreform and Flora Growth
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Painreform and Flora is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Painreform 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 Painreform 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 Painreform 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 Painreform i.e., Painreform and Flora Growth go up and down completely randomly.
Pair Corralation between Painreform and Flora Growth
Given the investment horizon of 90 days Painreform is expected to generate 1.21 times more return on investment than Flora Growth. However, Painreform is 1.21 times more volatile than Flora Growth Corp. It trades about 0.0 of its potential returns per unit of risk. Flora Growth Corp is currently generating about -0.08 per unit of risk. If you would invest 317.00 in Painreform on November 9, 2024 and sell it today you would lose (11.00) from holding Painreform or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Painreform vs. Flora Growth Corp
Performance |
| Timeline |
| Painreform |
| Flora Growth Corp |
Painreform and Flora Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Painreform and Flora Growth
The main advantage of trading using opposite Painreform and Flora Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Painreform 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.| Painreform vs. Regencell Bioscience Holdings | Painreform vs. Procaps Group SA | Painreform vs. Universe Pharmaceuticals | Painreform vs. Veritas Pharma |
| Flora Growth vs. Clever Leaves Holdings | Flora Growth vs. Painreform | Flora Growth vs. INC Research Holdings | Flora Growth vs. Lowell Farms |
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.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |