Correlation Between Aurora Mobile and Workiva
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Workiva 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 Workiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Workiva, you can compare the effects of market volatilities on Aurora Mobile and Workiva 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 Workiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Workiva.
Diversification Opportunities for Aurora Mobile and Workiva
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aurora and Workiva is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Workiva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workiva 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 Workiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workiva has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Workiva go up and down completely randomly.
Pair Corralation between Aurora Mobile and Workiva
Allowing for the 90-day total investment horizon Aurora Mobile is expected to under-perform the Workiva. In addition to that, Aurora Mobile is 1.69 times more volatile than Workiva. It trades about -0.05 of its total potential returns per unit of risk. Workiva is currently generating about 0.0 per unit of volatility. If you would invest 11,003 in Workiva on December 29, 2023 and sell it today you would lose (2,566) from holding Workiva or give up 23.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Aurora Mobile vs. Workiva
Performance |
Timeline |
Aurora Mobile |
Workiva |
Aurora Mobile and Workiva Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aurora Mobile and Workiva
The main advantage of trading using opposite Aurora Mobile and Workiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Workiva 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 Workiva will offset losses from the drop in Workiva's long position.Aurora Mobile vs. Global Blue Group | Aurora Mobile vs. Marqeta | Aurora Mobile vs. Block Inc | Aurora Mobile vs. Veritone |
Workiva vs. Kingsoft Cloud HoldingsLtd | Workiva vs. C3 Ai Inc | Workiva vs. MoneyLion | Workiva vs. Eventbrite Class A |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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