Correlation Between Aurora Cannabis and Jupiter Wellness
Can any of the company-specific risk be diversified away by investing in both Aurora Cannabis and Jupiter Wellness 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 Jupiter Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Cannabis and Jupiter Wellness, you can compare the effects of market volatilities on Aurora Cannabis and Jupiter Wellness 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 Jupiter Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Cannabis and Jupiter Wellness.
Diversification Opportunities for Aurora Cannabis and Jupiter Wellness
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurora and Jupiter is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Cannabis and Jupiter Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Wellness 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 Jupiter Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Wellness has no effect on the direction of Aurora Cannabis i.e., Aurora Cannabis and Jupiter Wellness go up and down completely randomly.
Pair Corralation between Aurora Cannabis and Jupiter Wellness
If you would invest 58.00 in Jupiter Wellness on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Jupiter Wellness or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Aurora Cannabis vs. Jupiter Wellness
Performance |
| Timeline |
| Aurora Cannabis |
| Jupiter Wellness |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aurora Cannabis and Jupiter Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Cannabis and Jupiter Wellness
The main advantage of trading using opposite Aurora Cannabis and Jupiter Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Cannabis position performs unexpectedly, Jupiter Wellness 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 Jupiter Wellness will offset losses from the drop in Jupiter Wellness' long position.| Aurora Cannabis vs. Canopy Growth Corp | Aurora Cannabis vs. SNDL Inc | Aurora Cannabis vs. Cronos Group | Aurora Cannabis vs. Curaleaf Holdings |
| Jupiter Wellness vs. Regencell Bioscience Holdings | Jupiter Wellness vs. Procaps Group SA | Jupiter Wellness vs. Cumberland Pharmaceuticals | Jupiter Wellness vs. Incannex Healthcare Ltd |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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