Correlation Between Flowers Foods and Acerus Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Flowers Foods and Acerus Pharmaceuticals 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 Flowers Foods and Acerus Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flowers Foods and Acerus Pharmaceuticals, you can compare the effects of market volatilities on Flowers Foods and Acerus Pharmaceuticals 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 Flowers Foods with a short position of Acerus Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowers Foods and Acerus Pharmaceuticals.
Diversification Opportunities for Flowers Foods and Acerus Pharmaceuticals
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flowers and Acerus is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Flowers Foods and Acerus Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acerus Pharmaceuticals and Flowers Foods 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 Flowers Foods are associated (or correlated) with Acerus Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acerus Pharmaceuticals has no effect on the direction of Flowers Foods i.e., Flowers Foods and Acerus Pharmaceuticals go up and down completely randomly.
Pair Corralation between Flowers Foods and Acerus Pharmaceuticals
If you would invest 2,325 in Flowers Foods on January 24, 2024 and sell it today you would earn a total of 144.00 from holding Flowers Foods or generate 6.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Flowers Foods vs. Acerus Pharmaceuticals
Performance |
Timeline |
Flowers Foods |
Acerus Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Flowers Foods and Acerus Pharmaceuticals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Flowers Foods and Acerus Pharmaceuticals
The main advantage of trading using opposite Flowers Foods and Acerus Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowers Foods position performs unexpectedly, Acerus Pharmaceuticals 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 Acerus Pharmaceuticals will offset losses from the drop in Acerus Pharmaceuticals' long position.Flowers Foods vs. Bunge Limited | Flowers Foods vs. Archer Daniels Midland | Flowers Foods vs. Fresh Del Monte | Flowers Foods vs. Limoneira Co |
Acerus Pharmaceuticals vs. NetSol Technologies | Acerus Pharmaceuticals vs. RadNet Inc | Acerus Pharmaceuticals vs. Amgen Inc | Acerus Pharmaceuticals vs. Datadog |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |