Correlation Between Aurora Cannabis and Oncolytics Biotech
Can any of the company-specific risk be diversified away by investing in both Aurora Cannabis and Oncolytics Biotech 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 Aurora Cannabis and Oncolytics Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Cannabis and Oncolytics Biotech, you can compare the effects of market volatilities on Aurora Cannabis and Oncolytics Biotech 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 Aurora Cannabis with a short position of Oncolytics Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Cannabis and Oncolytics Biotech.
Diversification Opportunities for Aurora Cannabis and Oncolytics Biotech
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aurora and Oncolytics is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Cannabis and Oncolytics Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncolytics Biotech and Aurora 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 Aurora Cannabis are associated (or correlated) with Oncolytics Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncolytics Biotech has no effect on the direction of Aurora Cannabis i.e., Aurora Cannabis and Oncolytics Biotech go up and down completely randomly.
Pair Corralation between Aurora Cannabis and Oncolytics Biotech
Assuming the 90 days trading horizon Aurora Cannabis is expected to generate 4.96 times more return on investment than Oncolytics Biotech. However, Aurora Cannabis is 4.96 times more volatile than Oncolytics Biotech. It trades about 0.23 of its potential returns per unit of risk. Oncolytics Biotech is currently generating about 0.07 per unit of risk. If you would invest 581.00 in Aurora Cannabis on January 30, 2024 and sell it today you would earn a total of 338.00 from holding Aurora Cannabis or generate 58.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aurora Cannabis vs. Oncolytics Biotech
Performance |
Timeline |
Aurora Cannabis |
Oncolytics Biotech |
Aurora Cannabis and Oncolytics Biotech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aurora Cannabis and Oncolytics Biotech
The main advantage of trading using opposite Aurora Cannabis and Oncolytics Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Cannabis position performs unexpectedly, Oncolytics Biotech 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 Oncolytics Biotech will offset losses from the drop in Oncolytics Biotech's long position.Aurora Cannabis vs. DelphX Capital Markets | Aurora Cannabis vs. Citadel Income | Aurora Cannabis vs. S Split Corp |
Oncolytics Biotech vs. DelphX Capital Markets | Oncolytics Biotech vs. Citadel Income | Oncolytics Biotech vs. S Split Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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