Correlation Between Aurora Mobile and Alleghany
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Alleghany 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 Alleghany into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Alleghany, you can compare the effects of market volatilities on Aurora Mobile and Alleghany 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 Alleghany. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Alleghany.
Diversification Opportunities for Aurora Mobile and Alleghany
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aurora and Alleghany is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Alleghany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alleghany 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 Alleghany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alleghany has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Alleghany go up and down completely randomly.
Pair Corralation between Aurora Mobile and Alleghany
If you would invest 300.00 in Aurora Mobile on January 24, 2024 and sell it today you would earn a total of 14.00 from holding Aurora Mobile or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aurora Mobile vs. Alleghany
Performance |
| Timeline |
| Aurora Mobile |
| Alleghany |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aurora Mobile and Alleghany Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Alleghany
The main advantage of trading using opposite Aurora Mobile and Alleghany positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Alleghany 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 Alleghany will offset losses from the drop in Alleghany's long position.| Aurora Mobile vs. Palo Alto Networks | Aurora Mobile vs. Zscaler | Aurora Mobile vs. Okta Inc | Aurora Mobile vs. MongoDB |
| Alleghany vs. Saia Inc | Alleghany vs. Sun Country Airlines | Alleghany vs. Planet Fitness | Alleghany vs. Yuexiu Transport Infrastructure |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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