Correlation Between Aura Investments and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both Aura Investments and Suny Cellular 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 Aura Investments and Suny Cellular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aura Investments and Suny Cellular Communication, you can compare the effects of market volatilities on Aura Investments and Suny Cellular 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 Aura Investments with a short position of Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aura Investments and Suny Cellular.
Diversification Opportunities for Aura Investments and Suny Cellular
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aura and Suny is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Aura Investments and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun and Aura Investments 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 Aura Investments are associated (or correlated) with Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of Aura Investments i.e., Aura Investments and Suny Cellular go up and down completely randomly.
Pair Corralation between Aura Investments and Suny Cellular
Assuming the 90 days trading horizon Aura Investments is expected to generate 1.35 times more return on investment than Suny Cellular. However, Aura Investments is 1.35 times more volatile than Suny Cellular Communication. It trades about 0.19 of its potential returns per unit of risk. Suny Cellular Communication is currently generating about 0.08 per unit of risk. If you would invest 121,008 in Aura Investments on September 3, 2024 and sell it today you would earn a total of 63,192 from holding Aura Investments or generate 52.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aura Investments vs. Suny Cellular Communication
Performance |
| Timeline |
| Aura Investments |
| Suny Cellular Commun |
Aura Investments and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aura Investments and Suny Cellular
The main advantage of trading using opposite Aura Investments and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aura Investments position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular's long position.| Aura Investments vs. Israel Canada | Aura Investments vs. Azrieli Group | Aura Investments vs. Delek Group | Aura Investments vs. Shikun Binui |
| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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