Correlation Between Auxly Cannabis and Rubicon Organics
Can any of the company-specific risk be diversified away by investing in both Auxly Cannabis and Rubicon Organics 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 Rubicon Organics 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 Rubicon Organics, you can compare the effects of market volatilities on Auxly Cannabis and Rubicon Organics 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 Rubicon Organics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auxly Cannabis and Rubicon Organics.
Diversification Opportunities for Auxly Cannabis and Rubicon Organics
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auxly and Rubicon is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Auxly Cannabis Group and Rubicon Organics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubicon Organics 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 Rubicon Organics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubicon Organics has no effect on the direction of Auxly Cannabis i.e., Auxly Cannabis and Rubicon Organics go up and down completely randomly.
Pair Corralation between Auxly Cannabis and Rubicon Organics
Assuming the 90 days trading horizon Auxly Cannabis Group is expected to generate 1.42 times more return on investment than Rubicon Organics. However, Auxly Cannabis is 1.42 times more volatile than Rubicon Organics. It trades about -0.01 of its potential returns per unit of risk. Rubicon Organics is currently generating about -0.05 per unit of risk. If you would invest 4.50 in Auxly Cannabis Group on September 1, 2024 and sell it today you would lose (0.50) from holding Auxly Cannabis Group or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Auxly Cannabis Group vs. Rubicon Organics
Performance |
| Timeline |
| Auxly Cannabis Group |
| Rubicon Organics |
Auxly Cannabis and Rubicon Organics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auxly Cannabis and Rubicon Organics
The main advantage of trading using opposite Auxly Cannabis and Rubicon Organics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auxly Cannabis position performs unexpectedly, Rubicon Organics 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 Rubicon Organics will offset losses from the drop in Rubicon Organics' long position.| Auxly Cannabis vs. iShares Canadian HYBrid | Auxly Cannabis vs. Altagas Cum Red | Auxly Cannabis vs. European Residential Real | Auxly Cannabis vs. iShares Fundamental Hedged |
| Rubicon Organics vs. iShares Canadian HYBrid | Rubicon Organics vs. Altagas Cum Red | Rubicon Organics vs. European Residential Real | Rubicon Organics vs. iShares Fundamental Hedged |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |