Correlation Between TILT Holdings and AYR Strategies

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

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

Diversification Opportunities for TILT Holdings and AYR Strategies

-0.42

Correlation Coefficient

TILT Holdings  AYR Strategies

Very good diversification

The 3 months correlation between TILT and AYR is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding TILT Holdings and AYR Strategies Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AYR Strategies Class and TILT Holdings 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 TILT Holdings are associated (or correlated) with AYR Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AYR Strategies Class has no effect on the direction of TILT Holdings i.e., TILT Holdings and AYR Strategies go up and down completely randomly.

Pair Corralation between TILT Holdings and AYR Strategies

Assuming the 90 days horizon TILT Holdings is expected to generate 9.05 times less return on investment than AYR Strategies. But when comparing it to its historical volatility, TILT Holdings is 5.4 times less risky than AYR Strategies. It trades about 0.1 of its potential returns per unit of risk. AYR Strategies Class is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  24.00  in AYR Strategies Class on May 22, 2025 and sell it today you would lose (20.49) from holding AYR Strategies Class or give up 85.38% of portfolio value over 90 days.

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

TILT Holdings  vs.  AYR Strategies Class

TILT Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in TILT Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TILT Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

AYR Strategies Class

Risk-Adjusted Performance

Good

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

Pair Trading with TILT Holdings and AYR Strategies

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

The idea behind TILT Holdings and AYR Strategies Class 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 Commodity Directory module to find actively traded commodities issued by global exchanges.