Correlation Between Aurora Mobile and Bridgeline Digital
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Bridgeline Digital 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 Bridgeline Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Bridgeline Digital, you can compare the effects of market volatilities on Aurora Mobile and Bridgeline Digital 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 Bridgeline Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Bridgeline Digital.
Diversification Opportunities for Aurora Mobile and Bridgeline Digital
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurora and Bridgeline is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Bridgeline Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgeline Digital 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 Bridgeline Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgeline Digital has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Bridgeline Digital go up and down completely randomly.
Pair Corralation between Aurora Mobile and Bridgeline Digital
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 1.75 times more return on investment than Bridgeline Digital. However, Aurora Mobile is 1.75 times more volatile than Bridgeline Digital. It trades about 0.0 of its potential returns per unit of risk. Bridgeline Digital is currently generating about 0.0 per unit of risk. If you would invest 1,780 in Aurora Mobile on August 23, 2024 and sell it today you would lose (958.00) from holding Aurora Mobile or give up 53.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Mobile vs. Bridgeline Digital
Performance |
| Timeline |
| Aurora Mobile |
| Bridgeline Digital |
Aurora Mobile and Bridgeline Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Bridgeline Digital
The main advantage of trading using opposite Aurora Mobile and Bridgeline Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Bridgeline Digital 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 Bridgeline Digital will offset losses from the drop in Bridgeline Digital's long position.| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
| Bridgeline Digital vs. Taoping | Bridgeline Digital vs. Datasea | Bridgeline Digital vs. Aurora Mobile | Bridgeline Digital vs. authID 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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