Correlation Between Elixxer and Auxly Cannabis

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Can any of the company-specific risk be diversified away by investing in both Elixxer and Auxly 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 Elixxer and Auxly Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixxer and Auxly Cannabis Group, you can compare the effects of market volatilities on Elixxer and Auxly 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 Elixxer with a short position of Auxly Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixxer and Auxly Cannabis.

Diversification Opportunities for Elixxer and Auxly Cannabis

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Elixxer and Auxly is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elixxer and Auxly Cannabis Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auxly Cannabis Group and Elixxer 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 Elixxer are associated (or correlated) with Auxly Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auxly Cannabis Group has no effect on the direction of Elixxer i.e., Elixxer and Auxly Cannabis go up and down completely randomly.

Pair Corralation between Elixxer and Auxly Cannabis

If you would invest  4.00  in Auxly Cannabis Group on August 30, 2024 and sell it today you would lose (0.25) from holding Auxly Cannabis Group or give up 6.25% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Elixxer  vs.  Auxly Cannabis Group

 Performance 
       Timeline  
Elixxer 

Risk-Adjusted Performance

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Over the last 90 days Elixxer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Elixxer is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Auxly Cannabis Group 

Risk-Adjusted Performance

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Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Auxly Cannabis Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Auxly Cannabis may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Elixxer and Auxly Cannabis Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Elixxer and Auxly Cannabis

The main advantage of trading using opposite Elixxer and Auxly Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixxer position performs unexpectedly, Auxly 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 Auxly Cannabis will offset losses from the drop in Auxly Cannabis' long position.
The idea behind Elixxer and Auxly Cannabis Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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