Correlation Between Auxly Cannabis and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Auxly Cannabis and Aya Gold 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 Auxly Cannabis and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auxly Cannabis Group and Aya Gold Silver, you can compare the effects of market volatilities on Auxly Cannabis and Aya Gold 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 Auxly Cannabis with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auxly Cannabis and Aya Gold.
Diversification Opportunities for Auxly Cannabis and Aya Gold
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auxly and Aya is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Auxly Cannabis Group and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver and Auxly 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 Auxly Cannabis Group are associated (or correlated) with Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Auxly Cannabis i.e., Auxly Cannabis and Aya Gold go up and down completely randomly.
Pair Corralation between Auxly Cannabis and Aya Gold
Assuming the 90 days horizon Auxly Cannabis Group is expected to generate 10.17 times more return on investment than Aya Gold. However, Auxly Cannabis is 10.17 times more volatile than Aya Gold Silver. It trades about 0.16 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.02 per unit of risk. If you would invest 1.42 in Auxly Cannabis Group on November 3, 2024 and sell it today you would earn a total of 1.24 from holding Auxly Cannabis Group or generate 87.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auxly Cannabis Group vs. Aya Gold Silver
Performance |
| Timeline |
| Auxly Cannabis Group |
| Aya Gold Silver |
Auxly Cannabis and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auxly Cannabis and Aya Gold
The main advantage of trading using opposite Auxly Cannabis and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auxly Cannabis position performs unexpectedly, Aya Gold 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 Aya Gold will offset losses from the drop in Aya Gold's long position.| Auxly Cannabis vs. CarsalesCom | Auxly Cannabis vs. InterContinental Hotels Group | Auxly Cannabis vs. BRAEMAR HOTELS RES | Auxly Cannabis vs. CODERE ONLINE LUX |
| Aya Gold vs. SIVERS SEMICONDUCTORS AB | Aya Gold vs. NorAm Drilling AS | Aya Gold vs. Volkswagen AG | Aya Gold vs. Darden Restaurants |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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