Correlation Between AusCann Group and Antisense Therapeutics

Can any of the company-specific risk be diversified away by investing in both AusCann Group and Antisense Therapeutics 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 AusCann Group and Antisense Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AusCann Group Holdings and Antisense Therapeutics Limited, you can compare the effects of market volatilities on AusCann Group and Antisense Therapeutics 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 AusCann Group with a short position of Antisense Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AusCann Group and Antisense Therapeutics.

Diversification Opportunities for AusCann Group and Antisense Therapeutics

0.0

Correlation Coefficient

AusCann Group  Antisense Therapeutics

Pay attention - limited upside

The 3 months correlation between AusCann and Antisense is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AusCann Group Holdings and Antisense Therapeutics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antisense Therapeutics and AusCann Group 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 AusCann Group Holdings are associated (or correlated) with Antisense Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antisense Therapeutics has no effect on the direction of AusCann Group i.e., AusCann Group and Antisense Therapeutics go up and down completely randomly.

Pair Corralation between AusCann Group and Antisense Therapeutics

If you would invest  0.38  in AusCann Group Holdings on October 10, 2024 and sell it today you would earn a total of  0.00  from holding AusCann Group Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	6.67%
Values	Daily Returns

AusCann Group Holdings  vs.  Antisense Therapeutics Limited

AusCann Group Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AusCann Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AusCann Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Antisense Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Antisense Therapeutics Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with AusCann Group and Antisense Therapeutics

The main advantage of trading using opposite AusCann Group and Antisense Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AusCann Group position performs unexpectedly, Antisense Therapeutics 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 Antisense Therapeutics will offset losses from the drop in Antisense Therapeutics' long position.

The idea behind AusCann Group Holdings and Antisense Therapeutics Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.