Correlation Between BioAge Labs, and Aurora Cannabis

Can any of the company-specific risk be diversified away by investing in both BioAge Labs, and Aurora 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 BioAge Labs, and Aurora Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BioAge Labs, and Aurora Cannabis, you can compare the effects of market volatilities on BioAge Labs, and Aurora 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 BioAge Labs, with a short position of Aurora Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioAge Labs, and Aurora Cannabis.

Diversification Opportunities for BioAge Labs, and Aurora Cannabis

0.51

Correlation Coefficient

BioAge Labs,  Aurora Cannabis

Very weak diversification

The 3 months correlation between BioAge and Aurora is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding BioAge Labs, and Aurora Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Cannabis and BioAge Labs, 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 BioAge Labs, are associated (or correlated) with Aurora Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Cannabis has no effect on the direction of BioAge Labs, i.e., BioAge Labs, and Aurora Cannabis go up and down completely randomly.

Pair Corralation between BioAge Labs, and Aurora Cannabis

Given the investment horizon of 90 days BioAge Labs, is expected to generate 0.98 times more return on investment than Aurora Cannabis. However, BioAge Labs, is 1.02 times less risky than Aurora Cannabis. It trades about 0.17 of its potential returns per unit of risk. Aurora Cannabis is currently generating about 0.05 per unit of risk. If you would invest  453.00  in BioAge Labs, on July 28, 2025 and sell it today you would earn a total of  307.00  from holding BioAge Labs, or generate 67.77% return on investment over 90 days.

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

BioAge Labs,  vs.  Aurora Cannabis

BioAge Labs,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BioAge Labs, are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, BioAge Labs, sustained solid returns over the last few months and may actually be approaching a breakup point.

Aurora Cannabis

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Aurora Cannabis are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental indicators, Aurora Cannabis sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioAge Labs, and Aurora Cannabis

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

The idea behind BioAge Labs, and Aurora Cannabis 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 CEOs Directory module to screen CEOs from public companies around the world.