Correlation Between Aurora Cannabis and Agile Thrpe
Can any of the company-specific risk be diversified away by investing in both Aurora Cannabis and Agile Thrpe 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 Aurora Cannabis and Agile Thrpe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Cannabis and Agile Thrpe, you can compare the effects of market volatilities on Aurora Cannabis and Agile Thrpe 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 Aurora Cannabis with a short position of Agile Thrpe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Cannabis and Agile Thrpe.
Diversification Opportunities for Aurora Cannabis and Agile Thrpe
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurora and Agile is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Cannabis and Agile Thrpe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agile Thrpe and Aurora 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 Aurora Cannabis are associated (or correlated) with Agile Thrpe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agile Thrpe has no effect on the direction of Aurora Cannabis i.e., Aurora Cannabis and Agile Thrpe go up and down completely randomly.
Pair Corralation between Aurora Cannabis and Agile Thrpe
If you would invest 294.00 in Agile Thrpe on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Agile Thrpe or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aurora Cannabis vs. Agile Thrpe
Performance |
| Timeline |
| Aurora Cannabis |
| Agile Thrpe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aurora Cannabis and Agile Thrpe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Cannabis and Agile Thrpe
The main advantage of trading using opposite Aurora Cannabis and Agile Thrpe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Cannabis position performs unexpectedly, Agile Thrpe 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 Agile Thrpe will offset losses from the drop in Agile Thrpe's long position.| Aurora Cannabis vs. Emergent Biosolutions | Aurora Cannabis vs. Bausch Health Companies | Aurora Cannabis vs. Neurocrine Biosciences | Aurora Cannabis vs. Teva Pharma Industries |
| Agile Thrpe vs. Assertio Therapeutics | Agile Thrpe vs. Amneal Pharmaceuticals, Class | Agile Thrpe vs. Lifecore Biomedical | Agile Thrpe vs. Alpha Teknova |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets |