Correlation Between Aurora Mobile and Gitlab
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Gitlab 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 Gitlab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Gitlab Inc, you can compare the effects of market volatilities on Aurora Mobile and Gitlab 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 Gitlab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Gitlab.
Diversification Opportunities for Aurora Mobile and Gitlab
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aurora and Gitlab is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Gitlab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gitlab Inc 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 Gitlab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gitlab Inc has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Gitlab go up and down completely randomly.
Pair Corralation between Aurora Mobile and Gitlab
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 4.55 times more return on investment than Gitlab. However, Aurora Mobile is 4.55 times more volatile than Gitlab Inc. It trades about 0.2 of its potential returns per unit of risk. Gitlab Inc is currently generating about -0.06 per unit of risk. If you would invest 428.00 in Aurora Mobile on September 19, 2024 and sell it today you would earn a total of 213.00 from holding Aurora Mobile or generate 49.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Mobile vs. Gitlab Inc
Performance |
| Timeline |
| Aurora Mobile |
| Gitlab Inc |
Aurora Mobile and Gitlab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Gitlab
The main advantage of trading using opposite Aurora Mobile and Gitlab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Gitlab 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 Gitlab will offset losses from the drop in Gitlab's long position.| Aurora Mobile vs. Evertec | Aurora Mobile vs. NetScout Systems | Aurora Mobile vs. CSG Systems International | Aurora Mobile vs. Tenable Holdings |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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