Correlation Between Aurora Investment and Monster Beverage
Can any of the company-specific risk be diversified away by investing in both Aurora Investment and Monster Beverage 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 Investment and Monster Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Investment Trust and Monster Beverage Corp, you can compare the effects of market volatilities on Aurora Investment and Monster Beverage 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 Investment with a short position of Monster Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Investment and Monster Beverage.
Diversification Opportunities for Aurora Investment and Monster Beverage
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aurora and Monster is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Investment Trust and Monster Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monster Beverage Corp and Aurora Investment 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 Investment Trust are associated (or correlated) with Monster Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monster Beverage Corp has no effect on the direction of Aurora Investment i.e., Aurora Investment and Monster Beverage go up and down completely randomly.
Pair Corralation between Aurora Investment and Monster Beverage
Assuming the 90 days trading horizon Aurora Investment Trust is expected to generate 0.76 times more return on investment than Monster Beverage. However, Aurora Investment Trust is 1.32 times less risky than Monster Beverage. It trades about 0.04 of its potential returns per unit of risk. Monster Beverage Corp is currently generating about 0.0 per unit of risk. If you would invest 20,115 in Aurora Investment Trust on September 2, 2024 and sell it today you would earn a total of 2,885 from holding Aurora Investment Trust or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.95% |
| Values | Daily Returns |
Aurora Investment Trust vs. Monster Beverage Corp
Performance |
| Timeline |
| Aurora Investment Trust |
| Monster Beverage Corp |
Aurora Investment and Monster Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Investment and Monster Beverage
The main advantage of trading using opposite Aurora Investment and Monster Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Investment position performs unexpectedly, Monster Beverage 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 Monster Beverage will offset losses from the drop in Monster Beverage's long position.| Aurora Investment vs. Toyota Motor Corp | Aurora Investment vs. SoftBank Group Corp | Aurora Investment vs. OTP Bank Nyrt | Aurora Investment vs. Las Vegas Sands |
| Monster Beverage vs. Uniper SE | Monster Beverage vs. Mulberry Group PLC | Monster Beverage vs. London Security Plc | Monster Beverage vs. Triad Group PLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |