becomes lower as it becomes moves less in tandem. This difference in correlation could either be positive or negative. This tool does not tell us. It is up to us to measure the difference. In our example below, we can See that Aphria’s prices compared to HMMJ have started going lower. This would be a good signal for us to zoom in on Aphria and evaluate whether they are missing out on things that other companies in the market are doing. If not, then perhaps it is just a temporary blip in prices and could actually signal a good time to purchase while it lags in value compared to its peers. We are not going to tell you which case this is. We are just sharing another technical technique that you can use when comparing companies. Happy evaluating.
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