Correlation Between Regencell Bioscience and Flora Growth
Can any of the company-specific risk be diversified away by investing in both Regencell Bioscience 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 Regencell Bioscience and Flora Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regencell Bioscience Holdings and Flora Growth Corp, you can compare the effects of market volatilities on Regencell Bioscience 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 Regencell Bioscience with a short position of Flora Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regencell Bioscience and Flora Growth.
Diversification Opportunities for Regencell Bioscience and Flora Growth
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regencell and Flora is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Regencell Bioscience Holdings 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 Regencell Bioscience 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 Regencell Bioscience Holdings 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 Regencell Bioscience i.e., Regencell Bioscience and Flora Growth go up and down completely randomly.
Pair Corralation between Regencell Bioscience and Flora Growth
Considering the 90-day investment horizon Regencell Bioscience Holdings is expected to generate 2.56 times more return on investment than Flora Growth. However, Regencell Bioscience is 2.56 times more volatile than Flora Growth Corp. It trades about -0.19 of its potential returns per unit of risk. Flora Growth Corp is currently generating about -0.86 per unit of risk. If you would invest 482.00 in Regencell Bioscience Holdings on November 2, 2024 and sell it today you would lose (104.00) from holding Regencell Bioscience Holdings or give up 21.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regencell Bioscience Holdings vs. Flora Growth Corp
Performance |
| Timeline |
| Regencell Bioscience |
| Flora Growth Corp |
Regencell Bioscience and Flora Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regencell Bioscience and Flora Growth
The main advantage of trading using opposite Regencell Bioscience and Flora Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regencell Bioscience 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.| Regencell Bioscience vs. Delta 9 Cannabis | Regencell Bioscience vs. City View Green | Regencell Bioscience vs. Benchmark Botanics | Regencell Bioscience vs. Speakeasy Cannabis Club |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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