Correlation Between Aurora Investment and Standard Chartered
Can any of the company-specific risk be diversified away by investing in both Aurora Investment and Standard Chartered 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 Standard Chartered 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 Standard Chartered PLC, you can compare the effects of market volatilities on Aurora Investment and Standard Chartered 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 Standard Chartered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Investment and Standard Chartered.
Diversification Opportunities for Aurora Investment and Standard Chartered
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aurora and Standard is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Investment Trust and Standard Chartered PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Chartered PLC 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 Standard Chartered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Chartered PLC has no effect on the direction of Aurora Investment i.e., Aurora Investment and Standard Chartered go up and down completely randomly.
Pair Corralation between Aurora Investment and Standard Chartered
Assuming the 90 days trading horizon Aurora Investment Trust is expected to under-perform the Standard Chartered. But the stock apears to be less risky and, when comparing its historical volatility, Aurora Investment Trust is 1.19 times less risky than Standard Chartered. The stock trades about -0.15 of its potential returns per unit of risk. The Standard Chartered PLC is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 91,980 in Standard Chartered PLC on September 3, 2024 and sell it today you would earn a total of 5,260 from holding Standard Chartered PLC or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Investment Trust vs. Standard Chartered PLC
Performance |
| Timeline |
| Aurora Investment Trust |
| Standard Chartered PLC |
Aurora Investment and Standard Chartered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Investment and Standard Chartered
The main advantage of trading using opposite Aurora Investment and Standard Chartered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Investment position performs unexpectedly, Standard Chartered 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 Standard Chartered will offset losses from the drop in Standard Chartered's long position.| Aurora Investment vs. Qurate Retail Series | Aurora Investment vs. Lundin Mining Corp | Aurora Investment vs. Gamma Communications PLC | Aurora Investment vs. Southern Copper Corp |
| Standard Chartered vs. SupplyMe Capital PLC | Standard Chartered vs. 88 Energy | Standard Chartered vs. Vodafone Group PLC | Standard Chartered vs. Vodafone 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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