Correlation Between Aurora Investment and Bell Food
Can any of the company-specific risk be diversified away by investing in both Aurora Investment and Bell Food 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 Bell Food 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 Bell Food Group, you can compare the effects of market volatilities on Aurora Investment and Bell Food 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 Bell Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Investment and Bell Food.
Diversification Opportunities for Aurora Investment and Bell Food
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aurora and Bell is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Investment Trust and Bell Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Food Group 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 Bell Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Food Group has no effect on the direction of Aurora Investment i.e., Aurora Investment and Bell Food go up and down completely randomly.
Pair Corralation between Aurora Investment and Bell Food
Assuming the 90 days trading horizon Aurora Investment Trust is expected to generate 1.6 times more return on investment than Bell Food. However, Aurora Investment is 1.6 times more volatile than Bell Food Group. It trades about -0.02 of its potential returns per unit of risk. Bell Food Group is currently generating about -0.05 per unit of risk. If you would invest 23,100 in Aurora Investment Trust on September 28, 2024 and sell it today you would lose (200.00) from holding Aurora Investment Trust or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Aurora Investment Trust vs. Bell Food Group
Performance |
| Timeline |
| Aurora Investment Trust |
| Bell Food Group |
Aurora Investment and Bell Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Investment and Bell Food
The main advantage of trading using opposite Aurora Investment and Bell Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Investment position performs unexpectedly, Bell Food 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 Bell Food will offset losses from the drop in Bell Food's long position.| Aurora Investment vs. Samsung Electronics Co | Aurora Investment vs. Samsung Electronics Co | Aurora Investment vs. Toyota Motor Corp | Aurora Investment vs. State Bank of |
| Bell Food vs. Uniper SE | Bell Food vs. Mulberry Group PLC | Bell Food vs. London Security Plc | Bell Food 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |