Aurora Cannabis Correlations

ACB Stock  CAD 6.86  0.10  1.44%   
The current 90-days correlation between Aurora Cannabis and Canopy Growth Corp is 0.74 (i.e., Poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Aurora Cannabis moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aurora Cannabis moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Aurora Cannabis Correlation With Market

Modest diversification

The correlation between Aurora Cannabis and DJI is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Cannabis and DJI in the same portfolio, assuming nothing else is changed.
  
The ability to find closely correlated positions to Aurora Cannabis could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aurora Cannabis when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Aurora Cannabis - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Aurora Cannabis to buy it.

Moving together with Aurora Stock

  0.64ASM Avino Silver GoldPairCorr

Moving against Aurora Stock

  0.63VCM Vecima NetworksPairCorr
  0.45NXE NexGen EnergyPairCorr
  0.39CNQ Canadian Natural ResPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
ACWEED
CRONWEED
ACCRON
  
High negative correlations   
BBAC
BBWEED
BBCRON

Risk-Adjusted Indicators

There is a big difference between Aurora Stock performing well and Aurora Cannabis Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Aurora Cannabis' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Aurora Cannabis without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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