Correlation Between Auxly Cannabis and Silvercorp Metals
Can any of the company-specific risk be diversified away by investing in both Auxly Cannabis and Silvercorp Metals 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 Silvercorp Metals 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 Silvercorp Metals, you can compare the effects of market volatilities on Auxly Cannabis and Silvercorp Metals 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 Silvercorp Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auxly Cannabis and Silvercorp Metals.
Diversification Opportunities for Auxly Cannabis and Silvercorp Metals
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auxly and Silvercorp is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Auxly Cannabis Group and Silvercorp Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercorp Metals 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 Silvercorp Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercorp Metals has no effect on the direction of Auxly Cannabis i.e., Auxly Cannabis and Silvercorp Metals go up and down completely randomly.
Pair Corralation between Auxly Cannabis and Silvercorp Metals
Assuming the 90 days trading horizon Auxly Cannabis is expected to generate 153.54 times less return on investment than Silvercorp Metals. In addition to that, Auxly Cannabis is 1.31 times more volatile than Silvercorp Metals. It trades about 0.0 of its total potential returns per unit of risk. Silvercorp Metals is currently generating about 0.16 per unit of volatility. If you would invest 645.00 in Silvercorp Metals on July 25, 2025 and sell it today you would earn a total of 246.00 from holding Silvercorp Metals or generate 38.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auxly Cannabis Group vs. Silvercorp Metals
Performance |
| Timeline |
| Auxly Cannabis Group |
| Silvercorp Metals |
Auxly Cannabis and Silvercorp Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auxly Cannabis and Silvercorp Metals
The main advantage of trading using opposite Auxly Cannabis and Silvercorp Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auxly Cannabis position performs unexpectedly, Silvercorp Metals 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 Silvercorp Metals will offset losses from the drop in Silvercorp Metals' long position.| Auxly Cannabis vs. HLS Therapeutics | Auxly Cannabis vs. Cannara Biotech | Auxly Cannabis vs. Biosyent | Auxly Cannabis vs. Cardiol Therapeutics Class |
| Silvercorp Metals vs. Champion Iron | Silvercorp Metals vs. Northern Dynasty Minerals | Silvercorp Metals vs. Aya Gold Silver | Silvercorp Metals vs. Trilogy Metals |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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