Correlation Between Aurora Mobile and BlackBerry
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and BlackBerry 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 Mobile and BlackBerry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and BlackBerry, you can compare the effects of market volatilities on Aurora Mobile and BlackBerry 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 Mobile with a short position of BlackBerry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and BlackBerry.
Diversification Opportunities for Aurora Mobile and BlackBerry
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aurora and BlackBerry is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and BlackBerry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackBerry and Aurora Mobile 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 Mobile are associated (or correlated) with BlackBerry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackBerry has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and BlackBerry go up and down completely randomly.
Pair Corralation between Aurora Mobile and BlackBerry
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 5.38 times more return on investment than BlackBerry. However, Aurora Mobile is 5.38 times more volatile than BlackBerry. It trades about 0.11 of its potential returns per unit of risk. BlackBerry is currently generating about 0.21 per unit of risk. If you would invest 695.00 in Aurora Mobile on August 31, 2024 and sell it today you would earn a total of 124.00 from holding Aurora Mobile or generate 17.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Mobile vs. BlackBerry
Performance |
| Timeline |
| Aurora Mobile |
| BlackBerry |
Aurora Mobile and BlackBerry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and BlackBerry
The main advantage of trading using opposite Aurora Mobile and BlackBerry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, BlackBerry 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 BlackBerry will offset losses from the drop in BlackBerry's long position.| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
| BlackBerry vs. Affirm Holdings | BlackBerry vs. Block Inc | BlackBerry vs. Uipath Inc | BlackBerry vs. Toast Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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