Correlation Between Aurora Cannabis and Nutranomics
Can any of the company-specific risk be diversified away by investing in both Aurora Cannabis and Nutranomics 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 Nutranomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Cannabis and Nutranomics, you can compare the effects of market volatilities on Aurora Cannabis and Nutranomics 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 Nutranomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Cannabis and Nutranomics.
Diversification Opportunities for Aurora Cannabis and Nutranomics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aurora and Nutranomics is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Cannabis and Nutranomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutranomics 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 Nutranomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutranomics has no effect on the direction of Aurora Cannabis i.e., Aurora Cannabis and Nutranomics go up and down completely randomly.
Pair Corralation between Aurora Cannabis and Nutranomics
If you would invest 0.01 in Nutranomics on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Nutranomics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aurora Cannabis vs. Nutranomics
Performance |
| Timeline |
| Aurora Cannabis |
| Nutranomics |
Aurora Cannabis and Nutranomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Cannabis and Nutranomics
The main advantage of trading using opposite Aurora Cannabis and Nutranomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Cannabis position performs unexpectedly, Nutranomics 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 Nutranomics will offset losses from the drop in Nutranomics' long position.| Aurora Cannabis vs. Canopy Growth Corp | Aurora Cannabis vs. SNDL Inc | Aurora Cannabis vs. Cronos Group | Aurora Cannabis vs. Curaleaf Holdings |
| Nutranomics vs. Link Reservations | Nutranomics vs. Virtual Medical International | Nutranomics vs. Anything Tech Media | Nutranomics vs. Global Hemp Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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