Correlation Between AYR Strategies and Jushi Holdings

Can any of the company-specific risk be diversified away by investing in both AYR Strategies and Jushi Holdings 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 AYR Strategies and Jushi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AYR Strategies Class and Jushi Holdings, you can compare the effects of market volatilities on AYR Strategies and Jushi Holdings 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 AYR Strategies with a short position of Jushi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AYR Strategies and Jushi Holdings.

Diversification Opportunities for AYR Strategies and Jushi Holdings

0.46

Correlation Coefficient

AYR Strategies  Jushi Holdings

Very weak diversification

The 3 months correlation between AYR and Jushi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding AYR Strategies Class and Jushi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jushi Holdings and AYR Strategies 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 AYR Strategies Class are associated (or correlated) with Jushi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jushi Holdings has no effect on the direction of AYR Strategies i.e., AYR Strategies and Jushi Holdings go up and down completely randomly.

Pair Corralation between AYR Strategies and Jushi Holdings

Assuming the 90 days horizon AYR Strategies Class is expected to under-perform the Jushi Holdings. In addition to that, AYR Strategies is 1.42 times more volatile than Jushi Holdings. It trades about -0.13 of its total potential returns per unit of risk. Jushi Holdings is currently generating about 0.03 per unit of volatility. If you would invest  27.00  in Jushi Holdings on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Jushi Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

AYR Strategies Class  vs.  Jushi Holdings

AYR Strategies Class

Risk-Adjusted Performance

Very Weak

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

Jushi Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jushi Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Jushi Holdings may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with AYR Strategies and Jushi Holdings

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

The idea behind AYR Strategies Class and Jushi Holdings 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.