Correlation Between Aurora Acquisition and Cars
Can any of the company-specific risk be diversified away by investing in both Aurora Acquisition and Cars 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 Acquisition and Cars into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Acquisition Corp and Cars Inc, you can compare the effects of market volatilities on Aurora Acquisition and Cars 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 Acquisition with a short position of Cars. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Acquisition and Cars.
Diversification Opportunities for Aurora Acquisition and Cars
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurora and Cars is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Acquisition Corp and Cars Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cars Inc and Aurora Acquisition 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 Acquisition Corp are associated (or correlated) with Cars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cars Inc has no effect on the direction of Aurora Acquisition i.e., Aurora Acquisition and Cars go up and down completely randomly.
Pair Corralation between Aurora Acquisition and Cars
If you would invest 1,814 in Cars Inc on September 3, 2024 and sell it today you would earn a total of 181.00 from holding Cars Inc or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.32% |
| Values | Daily Returns |
Aurora Acquisition Corp vs. Cars Inc
Performance |
| Timeline |
| Aurora Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cars Inc |
Aurora Acquisition and Cars Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Acquisition and Cars
The main advantage of trading using opposite Aurora Acquisition and Cars positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Acquisition position performs unexpectedly, Cars 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 Cars will offset losses from the drop in Cars' long position.| Aurora Acquisition vs. Aehr Test Systems | Aurora Acquisition vs. Everspin Technologies | Aurora Acquisition vs. MACOM Technology Solutions | Aurora Acquisition vs. ON Semiconductor |
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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