Correlation Between Auxly Cannabis and Nutanix

Can any of the company-specific risk be diversified away by investing in both Auxly Cannabis and Nutanix 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 Nutanix 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 Nutanix, you can compare the effects of market volatilities on Auxly Cannabis and Nutanix 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 Nutanix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auxly Cannabis and Nutanix.

Diversification Opportunities for Auxly Cannabis and Nutanix

-0.28

Correlation Coefficient

Auxly Cannabis  Nutanix

Very good diversification

The 3 months correlation between Auxly and Nutanix is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Auxly Cannabis Group and Nutanix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutanix 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 Nutanix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutanix has no effect on the direction of Auxly Cannabis i.e., Auxly Cannabis and Nutanix go up and down completely randomly.

Pair Corralation between Auxly Cannabis and Nutanix

Assuming the 90 days horizon Auxly Cannabis Group is expected to generate 3.13 times more return on investment than Nutanix. However, Auxly Cannabis is 3.13 times more volatile than Nutanix. It trades about 0.07 of its potential returns per unit of risk. Nutanix is currently generating about 0.07 per unit of risk. If you would invest  1.40  in Auxly Cannabis Group on October 21, 2024 and sell it today you would earn a total of  2.10  from holding Auxly Cannabis Group or generate 150.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Auxly Cannabis Group  vs.  Nutanix

Auxly Cannabis Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Auxly Cannabis Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Auxly Cannabis reported solid returns over the last few months and may actually be approaching a breakup point.

Nutanix

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nutanix are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Nutanix is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Auxly Cannabis and Nutanix

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

The idea behind Auxly Cannabis Group and Nutanix 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.