Correlation Between Auxly Cannabis and Cipher Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Auxly Cannabis and Cipher Pharmaceuticals 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 Auxly Cannabis and Cipher Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auxly Cannabis Group and Cipher Pharmaceuticals, you can compare the effects of market volatilities on Auxly Cannabis and Cipher Pharmaceuticals 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 Auxly Cannabis with a short position of Cipher Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auxly Cannabis and Cipher Pharmaceuticals.
Diversification Opportunities for Auxly Cannabis and Cipher Pharmaceuticals
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Auxly and Cipher is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Auxly Cannabis Group and Cipher Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Pharmaceuticals and Auxly 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 Auxly Cannabis Group are associated (or correlated) with Cipher Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Pharmaceuticals has no effect on the direction of Auxly Cannabis i.e., Auxly Cannabis and Cipher Pharmaceuticals go up and down completely randomly.
Pair Corralation between Auxly Cannabis and Cipher Pharmaceuticals
Assuming the 90 days trading horizon Auxly Cannabis Group is expected to under-perform the Cipher Pharmaceuticals. In addition to that, Auxly Cannabis is 2.34 times more volatile than Cipher Pharmaceuticals. It trades about -0.07 of its total potential returns per unit of risk. Cipher Pharmaceuticals is currently generating about -0.09 per unit of volatility. If you would invest 1,589 in Cipher Pharmaceuticals on August 29, 2024 and sell it today you would lose (149.00) from holding Cipher Pharmaceuticals or give up 9.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auxly Cannabis Group vs. Cipher Pharmaceuticals
Performance |
| Timeline |
| Auxly Cannabis Group |
| Cipher Pharmaceuticals |
Auxly Cannabis and Cipher Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auxly Cannabis and Cipher Pharmaceuticals
The main advantage of trading using opposite Auxly Cannabis and Cipher Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auxly Cannabis position performs unexpectedly, Cipher Pharmaceuticals 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 Cipher Pharmaceuticals will offset losses from the drop in Cipher Pharmaceuticals' long position.| Auxly Cannabis vs. OrganiGram Holdings | Auxly Cannabis vs. Tilray Inc | Auxly Cannabis vs. Lifeist Wellness | Auxly Cannabis vs. Medipharm Labs Corp |
| Cipher Pharmaceuticals vs. Auxly Cannabis Group | Cipher Pharmaceuticals vs. Entourage Health Corp | Cipher Pharmaceuticals vs. iShares Canadian HYBrid | Cipher Pharmaceuticals vs. Altagas Cum Red |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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