Correlation Between Aurora Innovation and Computer Task
Can any of the company-specific risk be diversified away by investing in both Aurora Innovation and Computer Task 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 Innovation and Computer Task into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Innovation and Computer Task Group, you can compare the effects of market volatilities on Aurora Innovation and Computer Task 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 Innovation with a short position of Computer Task. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Innovation and Computer Task.
Diversification Opportunities for Aurora Innovation and Computer Task
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurora and Computer is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Innovation and Computer Task Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Task Group and Aurora Innovation 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 Innovation are associated (or correlated) with Computer Task. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Task Group has no effect on the direction of Aurora Innovation i.e., Aurora Innovation and Computer Task go up and down completely randomly.
Pair Corralation between Aurora Innovation and Computer Task
If you would invest 685.00 in Aurora Innovation on August 28, 2024 and sell it today you would lose (40.00) from holding Aurora Innovation or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aurora Innovation vs. Computer Task Group
Performance |
| Timeline |
| Aurora Innovation |
| Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aurora Innovation and Computer Task Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Innovation and Computer Task
The main advantage of trading using opposite Aurora Innovation and Computer Task positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Innovation position performs unexpectedly, Computer Task 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 Computer Task will offset losses from the drop in Computer Task's long position.| Aurora Innovation vs. FiscalNote Holdings | Aurora Innovation vs. Innodata | Aurora Innovation vs. International Business Machines | Aurora Innovation vs. BigBearai Holdings |
| Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Nayax | Computer Task vs. Formula Systems 1985 |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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