Correlation Between Aurora Mobile and Nextplay Technologies
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Nextplay Technologies 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 Nextplay Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Nextplay Technologies, you can compare the effects of market volatilities on Aurora Mobile and Nextplay Technologies 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 Nextplay Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Nextplay Technologies.
Diversification Opportunities for Aurora Mobile and Nextplay Technologies
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurora and Nextplay is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Nextplay Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplay Technologies 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 Nextplay Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextplay Technologies has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Nextplay Technologies go up and down completely randomly.
Pair Corralation between Aurora Mobile and Nextplay Technologies
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 1.29 times more return on investment than Nextplay Technologies. However, Aurora Mobile is 1.29 times more volatile than Nextplay Technologies. It trades about 0.02 of its potential returns per unit of risk. Nextplay Technologies is currently generating about -0.07 per unit of risk. If you would invest 1,375 in Aurora Mobile on November 5, 2024 and sell it today you would lose (595.00) from holding Aurora Mobile or give up 43.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.47% |
| Values | Daily Returns |
Aurora Mobile vs. Nextplay Technologies
Performance |
| Timeline |
| Aurora Mobile |
| Nextplay Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aurora Mobile and Nextplay Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Nextplay Technologies
The main advantage of trading using opposite Aurora Mobile and Nextplay Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Nextplay Technologies 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 Nextplay Technologies will offset losses from the drop in Nextplay Technologies' long position.| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
| Nextplay Technologies vs. Datasea | Nextplay Technologies vs. authID Inc | Nextplay Technologies vs. Priority Technology Holdings | Nextplay Technologies vs. Fuse Science |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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