Correlation Between Aurora Mobile and Paysign
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Paysign 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 Paysign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Paysign, you can compare the effects of market volatilities on Aurora Mobile and Paysign 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 Paysign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Paysign.
Diversification Opportunities for Aurora Mobile and Paysign
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aurora and Paysign is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Paysign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysign 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 Paysign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysign has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Paysign go up and down completely randomly.
Pair Corralation between Aurora Mobile and Paysign
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 3.55 times more return on investment than Paysign. However, Aurora Mobile is 3.55 times more volatile than Paysign. It trades about 0.15 of its potential returns per unit of risk. Paysign is currently generating about -0.17 per unit of risk. If you would invest 422.00 in Aurora Mobile on August 31, 2024 and sell it today you would earn a total of 397.00 from holding Aurora Mobile or generate 94.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Mobile vs. Paysign
Performance |
| Timeline |
| Aurora Mobile |
| Paysign |
Aurora Mobile and Paysign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Paysign
The main advantage of trading using opposite Aurora Mobile and Paysign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Paysign 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 Paysign will offset losses from the drop in Paysign's long position.| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
| Paysign vs. NetScout Systems | Paysign vs. Priority Technology Holdings | Paysign vs. OneSpan | Paysign vs. Consensus Cloud Solutions |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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