Correlation Between Aurora Mobile and Intrusion
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Intrusion 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 Intrusion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Intrusion, you can compare the effects of market volatilities on Aurora Mobile and Intrusion 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 Intrusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Intrusion.
Diversification Opportunities for Aurora Mobile and Intrusion
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aurora and Intrusion is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Intrusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrusion 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 Intrusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrusion has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Intrusion go up and down completely randomly.
Pair Corralation between Aurora Mobile and Intrusion
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 2.5 times more return on investment than Intrusion. However, Aurora Mobile is 2.5 times more volatile than Intrusion. It trades about 0.03 of its potential returns per unit of risk. Intrusion is currently generating about -0.11 per unit of risk. If you would invest 767.00 in Aurora Mobile on August 25, 2024 and sell it today you would lose (66.00) from holding Aurora Mobile or give up 8.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Mobile vs. Intrusion
Performance |
| Timeline |
| Aurora Mobile |
| Intrusion |
Aurora Mobile and Intrusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Intrusion
The main advantage of trading using opposite Aurora Mobile and Intrusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Intrusion 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 Intrusion will offset losses from the drop in Intrusion's long position.| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
| Intrusion vs. Cerberus Cyber Sentinel | Intrusion vs. authID Inc | Intrusion vs. Hub Cyber Security | Intrusion vs. Payoneer Global |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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