Correlation Between Aurora Technology and Cartica Acquisition
Can any of the company-specific risk be diversified away by investing in both Aurora Technology and Cartica Acquisition 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 Technology and Cartica Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Technology Acquisition and Cartica Acquisition Corp, you can compare the effects of market volatilities on Aurora Technology and Cartica Acquisition 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 Technology with a short position of Cartica Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Technology and Cartica Acquisition.
Diversification Opportunities for Aurora Technology and Cartica Acquisition
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurora and Cartica is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Technology Acquisition and Cartica Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartica Acquisition Corp and Aurora Technology 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 Technology Acquisition are associated (or correlated) with Cartica Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartica Acquisition Corp has no effect on the direction of Aurora Technology i.e., Aurora Technology and Cartica Acquisition go up and down completely randomly.
Pair Corralation between Aurora Technology and Cartica Acquisition
If you would invest 1,143 in Cartica Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Cartica Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Aurora Technology Acquisition vs. Cartica Acquisition Corp
Performance |
| Timeline |
| Aurora Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cartica Acquisition Corp |
Aurora Technology and Cartica Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Technology and Cartica Acquisition
The main advantage of trading using opposite Aurora Technology and Cartica Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Technology position performs unexpectedly, Cartica Acquisition 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 Cartica Acquisition will offset losses from the drop in Cartica Acquisition's long position.| Aurora Technology vs. Scholastic | Aurora Technology vs. Sun Life Financial | Aurora Technology vs. United Fire Group | Aurora Technology vs. MGIC Investment Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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