Correlation Between Aurora Solar and Nextracker
Can any of the company-specific risk be diversified away by investing in both Aurora Solar and Nextracker 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 Solar and Nextracker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Solar Technologies and Nextracker Class A, you can compare the effects of market volatilities on Aurora Solar and Nextracker 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 Solar with a short position of Nextracker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Solar and Nextracker.
Diversification Opportunities for Aurora Solar and Nextracker
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aurora and Nextracker is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Solar Technologies and Nextracker Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextracker Class A and Aurora Solar 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 Solar Technologies are associated (or correlated) with Nextracker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextracker Class A has no effect on the direction of Aurora Solar i.e., Aurora Solar and Nextracker go up and down completely randomly.
Pair Corralation between Aurora Solar and Nextracker
Assuming the 90 days horizon Aurora Solar Technologies is expected to under-perform the Nextracker. In addition to that, Aurora Solar is 3.8 times more volatile than Nextracker Class A. It trades about 0.0 of its total potential returns per unit of risk. Nextracker Class A is currently generating about 0.01 per unit of volatility. If you would invest 3,982 in Nextracker Class A on September 1, 2024 and sell it today you would lose (11.00) from holding Nextracker Class A or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Solar Technologies vs. Nextracker Class A
Performance |
| Timeline |
| Aurora Solar Technologies |
| Nextracker Class A |
Aurora Solar and Nextracker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Solar and Nextracker
The main advantage of trading using opposite Aurora Solar and Nextracker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Solar position performs unexpectedly, Nextracker 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 Nextracker will offset losses from the drop in Nextracker's long position.| Aurora Solar vs. BCE Inc | Aurora Solar vs. Axiologix | Aurora Solar vs. Advanced Info Service | Aurora Solar vs. HUMANA INC |
| Nextracker vs. Vast Renewables Limited | Nextracker vs. 1847 Holdings LLC | Nextracker vs. Westport Fuel Systems | Nextracker vs. Falcons Beyond Global, |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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