Correlation Between KENEDIX OFFICE and Auxly Cannabis
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE 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 KENEDIX OFFICE and Auxly Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and Auxly Cannabis Group, you can compare the effects of market volatilities on KENEDIX OFFICE 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 KENEDIX OFFICE with a short position of Auxly Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and Auxly Cannabis.
Diversification Opportunities for KENEDIX OFFICE and Auxly Cannabis
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between KENEDIX and Auxly is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV 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 KENEDIX OFFICE 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 KENEDIX OFFICE INV 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 KENEDIX OFFICE i.e., KENEDIX OFFICE and Auxly Cannabis go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and Auxly Cannabis
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.11 times more return on investment than Auxly Cannabis. However, KENEDIX OFFICE INV is 9.29 times less risky than Auxly Cannabis. It trades about 0.16 of its potential returns per unit of risk. Auxly Cannabis Group is currently generating about 0.02 per unit of risk. If you would invest 90,500 in KENEDIX OFFICE INV on November 4, 2024 and sell it today you would earn a total of 4,000 from holding KENEDIX OFFICE INV or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. Auxly Cannabis Group
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| Auxly Cannabis Group |
KENEDIX OFFICE and Auxly Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and Auxly Cannabis
The main advantage of trading using opposite KENEDIX OFFICE and Auxly Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE 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.| KENEDIX OFFICE vs. Aristocrat Leisure Limited | KENEDIX OFFICE vs. NORTHEAST UTILITIES | KENEDIX OFFICE vs. Air Transport Services | KENEDIX OFFICE vs. FIREWEED METALS P |
| Auxly Cannabis vs. Waste Management | Auxly Cannabis vs. Aedas Homes SA | Auxly Cannabis vs. RCI Hospitality Holdings | Auxly Cannabis vs. Autohome ADR |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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