Correlation Between Aurora Mobile and Paysign
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Paysign 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 Aurora Mobile and Paysign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Paysign, you can compare the effects of market volatilities on Aurora Mobile and Paysign 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 Aurora Mobile with a short position of Paysign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Paysign.
Diversification Opportunities for Aurora Mobile and Paysign
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurora and Paysign is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Paysign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysign and Aurora Mobile 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 Aurora Mobile are associated (or correlated) with Paysign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysign has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Paysign go up and down completely randomly.
Pair Corralation between Aurora Mobile and Paysign
Allowing for the 90-day total investment horizon Aurora Mobile is expected to under-perform the Paysign. But the stock apears to be less risky and, when comparing its historical volatility, Aurora Mobile is 1.05 times less risky than Paysign. The stock trades about -0.11 of its potential returns per unit of risk. The Paysign is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 337.00 in Paysign on January 20, 2024 and sell it today you would earn a total of 87.00 from holding Paysign or generate 25.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Aurora Mobile vs. Paysign
Performance |
Timeline |
Aurora Mobile |
Paysign |
Aurora Mobile and Paysign Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aurora Mobile and Paysign
The main advantage of trading using opposite Aurora Mobile and Paysign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Paysign 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 Paysign will offset losses from the drop in Paysign's long position.Aurora Mobile vs. Evertec | Aurora Mobile vs. CSG Systems International | Aurora Mobile vs. Radware | Aurora Mobile vs. NetScout Systems |
Paysign vs. Crowdstrike Holdings | Paysign vs. Cloudflare | Paysign vs. Palo Alto Networks | Paysign vs. Zscaler |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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