Correlation Between Agile Thrpe and Aurora Cannabis
Can any of the company-specific risk be diversified away by investing in both Agile Thrpe and Aurora Cannabis 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 Agile Thrpe and Aurora Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agile Thrpe and Aurora Cannabis, you can compare the effects of market volatilities on Agile Thrpe and Aurora Cannabis 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 Agile Thrpe with a short position of Aurora Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Thrpe and Aurora Cannabis.
Diversification Opportunities for Agile Thrpe and Aurora Cannabis
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agile and Aurora is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Agile Thrpe and Aurora Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Cannabis and Agile Thrpe 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 Agile Thrpe are associated (or correlated) with Aurora Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Cannabis has no effect on the direction of Agile Thrpe i.e., Agile Thrpe and Aurora Cannabis go up and down completely randomly.
Pair Corralation between Agile Thrpe and Aurora Cannabis
Given the investment horizon of 90 days Agile Thrpe is expected to under-perform the Aurora Cannabis. But the stock apears to be less risky and, when comparing its historical volatility, Agile Thrpe is 1.19 times less risky than Aurora Cannabis. The stock trades about -0.13 of its potential returns per unit of risk. The Aurora Cannabis is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 862.00 in Aurora Cannabis on September 14, 2024 and sell it today you would lose (437.50) from holding Aurora Cannabis or give up 50.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.09% |
| Values | Daily Returns |
Agile Thrpe vs. Aurora Cannabis
Performance |
| Timeline |
| Agile Thrpe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aurora Cannabis |
Agile Thrpe and Aurora Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agile Thrpe and Aurora Cannabis
The main advantage of trading using opposite Agile Thrpe and Aurora Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agile Thrpe position performs unexpectedly, Aurora Cannabis 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 Aurora Cannabis will offset losses from the drop in Aurora Cannabis' long position.| Agile Thrpe vs. Assertio Therapeutics | Agile Thrpe vs. Amneal Pharmaceuticals, Class | Agile Thrpe vs. Lifecore Biomedical | Agile Thrpe vs. Alpha Teknova |
| Aurora Cannabis vs. Emergent Biosolutions | Aurora Cannabis vs. Bausch Health Companies | Aurora Cannabis vs. Neurocrine Biosciences | Aurora Cannabis vs. Teva Pharma Industries |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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