Correlation Between Surrozen Warrant and Aurora Cannabis
Can any of the company-specific risk be diversified away by investing in both Surrozen Warrant 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 Surrozen Warrant and Aurora Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surrozen Warrant and Aurora Cannabis, you can compare the effects of market volatilities on Surrozen Warrant 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 Surrozen Warrant with a short position of Aurora Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surrozen Warrant and Aurora Cannabis.
Diversification Opportunities for Surrozen Warrant and Aurora Cannabis
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Surrozen and Aurora is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Surrozen Warrant and Aurora Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Cannabis and Surrozen Warrant 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 Surrozen Warrant 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 Surrozen Warrant i.e., Surrozen Warrant and Aurora Cannabis go up and down completely randomly.
Pair Corralation between Surrozen Warrant and Aurora Cannabis
Assuming the 90 days horizon Surrozen Warrant is expected to generate 14.21 times more return on investment than Aurora Cannabis. However, Surrozen Warrant is 14.21 times more volatile than Aurora Cannabis. It trades about 0.21 of its potential returns per unit of risk. Aurora Cannabis is currently generating about -0.12 per unit of risk. If you would invest 2.20 in Surrozen Warrant on December 31, 2024 and sell it today you would earn a total of 0.32 from holding Surrozen Warrant or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Surrozen Warrant vs. Aurora Cannabis
Performance |
| Timeline |
| Surrozen Warrant |
| Aurora Cannabis |
Surrozen Warrant and Aurora Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surrozen Warrant and Aurora Cannabis
The main advantage of trading using opposite Surrozen Warrant and Aurora Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surrozen Warrant 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.| Surrozen Warrant vs. Surrozen | Surrozen Warrant vs. Celularity | Surrozen Warrant vs. Quantum Si incorporated | Surrozen Warrant vs. Humacyte |
| Aurora Cannabis vs. Canopy Growth Corp | Aurora Cannabis vs. SNDL Inc | Aurora Cannabis vs. Cronos Group | Aurora Cannabis vs. Curaleaf Holdings |
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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