Correlation Between Cerberus Cyber and Aurora Mobile
Can any of the company-specific risk be diversified away by investing in both Cerberus Cyber and Aurora Mobile 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 Cerberus Cyber and Aurora Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cerberus Cyber Sentinel and Aurora Mobile, you can compare the effects of market volatilities on Cerberus Cyber and Aurora Mobile 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 Cerberus Cyber with a short position of Aurora Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerberus Cyber and Aurora Mobile.
Diversification Opportunities for Cerberus Cyber and Aurora Mobile
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cerberus and Aurora is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cerberus Cyber Sentinel and Aurora Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Mobile and Cerberus Cyber 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 Cerberus Cyber Sentinel are associated (or correlated) with Aurora Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Mobile has no effect on the direction of Cerberus Cyber i.e., Cerberus Cyber and Aurora Mobile go up and down completely randomly.
Pair Corralation between Cerberus Cyber and Aurora Mobile
Given the investment horizon of 90 days Cerberus Cyber Sentinel is expected to under-perform the Aurora Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Cerberus Cyber Sentinel is 7.8 times less risky than Aurora Mobile. The stock trades about -0.23 of its potential returns per unit of risk. The Aurora Mobile is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 620.00 in Aurora Mobile on November 9, 2024 and sell it today you would earn a total of 325.00 from holding Aurora Mobile or generate 52.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cerberus Cyber Sentinel vs. Aurora Mobile
Performance |
| Timeline |
| Cerberus Cyber Sentinel |
| Aurora Mobile |
Cerberus Cyber and Aurora Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cerberus Cyber and Aurora Mobile
The main advantage of trading using opposite Cerberus Cyber and Aurora Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerberus Cyber position performs unexpectedly, Aurora Mobile 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 Aurora Mobile will offset losses from the drop in Aurora Mobile's long position.| Cerberus Cyber vs. Hub Cyber Security | Cerberus Cyber vs. Hub Cyber Security | Cerberus Cyber vs. Arqit Quantum | Cerberus Cyber vs. Pagaya Technologies |
| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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