Correlation Between Constellation Brands and Auxly Cannabis

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Constellation Brands and Auxly Cannabis 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 Constellation Brands and Auxly Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Constellation Brands Class and Auxly Cannabis Group, you can compare the effects of market volatilities on Constellation Brands and Auxly Cannabis 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 Constellation Brands with a short position of Auxly Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Constellation Brands and Auxly Cannabis.

Diversification Opportunities for Constellation Brands and Auxly Cannabis

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Constellation Brands and Auxly Cannabis

If you would invest  24,744  in Constellation Brands Class on December 30, 2023 and sell it today you would earn a total of  2,432  from holding Constellation Brands Class or generate 9.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Constellation Brands Class  vs.  Auxly Cannabis Group

 Performance 
       Timeline  
Constellation Brands 

Risk-Adjusted Performance

13 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Constellation Brands Class are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Constellation Brands may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Auxly Cannabis Group 

Risk-Adjusted Performance

0 of 100

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

Constellation Brands and Auxly Cannabis Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Constellation Brands and Auxly Cannabis

The main advantage of trading using opposite Constellation Brands and Auxly Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Constellation Brands position performs unexpectedly, Auxly Cannabis 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 Auxly Cannabis will offset losses from the drop in Auxly Cannabis' long position.
The idea behind Constellation Brands Class and Auxly Cannabis Group 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.
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Content Syndication
Quickly integrate customizable finance content to your own investment portal
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges