Correlation Between Aurora Innovation and JSR
Can any of the company-specific risk be diversified away by investing in both Aurora Innovation and JSR 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 JSR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Innovation and JSR Corporation, you can compare the effects of market volatilities on Aurora Innovation and JSR 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 JSR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Innovation and JSR.
Diversification Opportunities for Aurora Innovation and JSR
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurora and JSR is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Innovation and JSR Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSR Corporation 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 JSR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSR Corporation has no effect on the direction of Aurora Innovation i.e., Aurora Innovation and JSR go up and down completely randomly.
Pair Corralation between Aurora Innovation and JSR
Considering the 90-day investment horizon Aurora Innovation is expected to generate 16.2 times more return on investment than JSR. However, Aurora Innovation is 16.2 times more volatile than JSR Corporation. It trades about 0.09 of its potential returns per unit of risk. JSR Corporation is currently generating about 0.09 per unit of risk. If you would invest 263.00 in Aurora Innovation on September 2, 2024 and sell it today you would earn a total of 384.00 from holding Aurora Innovation or generate 146.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.84% |
| Values | Daily Returns |
Aurora Innovation vs. JSR Corp.
Performance |
| Timeline |
| Aurora Innovation |
| JSR Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aurora Innovation and JSR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Innovation and JSR
The main advantage of trading using opposite Aurora Innovation and JSR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Innovation position performs unexpectedly, JSR 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 JSR will offset losses from the drop in JSR's long position.| Aurora Innovation vs. Innodata | Aurora Innovation vs. International Business Machines | Aurora Innovation vs. BigBearai Holdings | Aurora Innovation vs. CLPS Inc |
| JSR vs. Chemours Co | JSR vs. International Flavors Fragrances | JSR vs. Air Products and | JSR vs. PPG Industries |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |