Correlation Between Aurora Mobile and Global Cannabis
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Global Cannabis 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 Global Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Global Cannabis Applications, you can compare the effects of market volatilities on Aurora Mobile and Global Cannabis 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 Global Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Global Cannabis.
Diversification Opportunities for Aurora Mobile and Global Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aurora and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Global Cannabis Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Cannabis Appl 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 Global Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Cannabis Appl has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Global Cannabis go up and down completely randomly.
Pair Corralation between Aurora Mobile and Global Cannabis
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 6.87 times less return on investment than Global Cannabis. But when comparing it to its historical volatility, Aurora Mobile is 2.04 times less risky than Global Cannabis. It trades about 0.02 of its potential returns per unit of risk. Global Cannabis Applications is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.68 in Global Cannabis Applications on November 5, 2024 and sell it today you would lose (1.28) from holding Global Cannabis Applications or give up 76.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aurora Mobile vs. Global Cannabis Applications
Performance |
| Timeline |
| Aurora Mobile |
| Global Cannabis Appl |
Aurora Mobile and Global Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Global Cannabis
The main advantage of trading using opposite Aurora Mobile and Global Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Global Cannabis 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 Global Cannabis will offset losses from the drop in Global Cannabis' long position.| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
| Global Cannabis vs. Skkynet Cloud Systems | Global Cannabis vs. TonnerOne World Holdings | Global Cannabis vs. Visium Technologies | Global Cannabis vs. Zenvia 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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