Correlation Between Aurora Innovation and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both Aurora Innovation and SAIHEAT 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 SAIHEAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Innovation and SAIHEAT Limited, you can compare the effects of market volatilities on Aurora Innovation and SAIHEAT 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 SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Innovation and SAIHEAT.
Diversification Opportunities for Aurora Innovation and SAIHEAT
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurora and SAIHEAT is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Innovation and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited 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 SAIHEAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIHEAT Limited has no effect on the direction of Aurora Innovation i.e., Aurora Innovation and SAIHEAT go up and down completely randomly.
Pair Corralation between Aurora Innovation and SAIHEAT
Considering the 90-day investment horizon Aurora Innovation is expected to generate 0.69 times more return on investment than SAIHEAT. However, Aurora Innovation is 1.46 times less risky than SAIHEAT. It trades about 0.1 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about 0.05 per unit of risk. If you would invest 426.00 in Aurora Innovation on November 2, 2024 and sell it today you would earn a total of 255.00 from holding Aurora Innovation or generate 59.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Innovation vs. SAIHEAT Limited
Performance |
| Timeline |
| Aurora Innovation |
| SAIHEAT Limited |
Aurora Innovation and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Innovation and SAIHEAT
The main advantage of trading using opposite Aurora Innovation and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Innovation position performs unexpectedly, SAIHEAT 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 SAIHEAT will offset losses from the drop in SAIHEAT's long position.| Aurora Innovation vs. FiscalNote Holdings | Aurora Innovation vs. Innodata | Aurora Innovation vs. International Business Machines | Aurora Innovation vs. BigBearai Holdings |
| SAIHEAT vs. Douglas Emmett | SAIHEAT vs. Amkor Technology | SAIHEAT vs. InfuSystems Holdings | SAIHEAT vs. RBC Bearings Incorporated |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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