Correlation Between Aurora Mobile and AEye
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and AEye 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 AEye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and AEye Inc, you can compare the effects of market volatilities on Aurora Mobile and AEye 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 AEye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and AEye.
Diversification Opportunities for Aurora Mobile and AEye
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aurora and AEye is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and AEye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEye 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 AEye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEye Inc has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and AEye go up and down completely randomly.
Pair Corralation between Aurora Mobile and AEye
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 2.24 times less return on investment than AEye. But when comparing it to its historical volatility, Aurora Mobile is 1.62 times less risky than AEye. It trades about 0.11 of its potential returns per unit of risk. AEye Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 0.90 in AEye Inc on September 1, 2024 and sell it today you would earn a total of 0.30 from holding AEye Inc or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Mobile vs. AEye Inc
Performance |
| Timeline |
| Aurora Mobile |
| AEye Inc |
Aurora Mobile and AEye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and AEye
The main advantage of trading using opposite Aurora Mobile and AEye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, AEye 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 AEye will offset losses from the drop in AEye's long position.| Aurora Mobile vs. Palo Alto Networks | Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Pagaya Technologies | Aurora Mobile vs. Telos Corp |
| AEye vs. Faraday Future Intelligent | AEye vs. Innoviz Technologies | AEye vs. Aeye Inc | AEye vs. Xos Equity Warrants |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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