Correlation Between Aurora Mobile and Glimpse
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Glimpse 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 Glimpse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Glimpse Group, you can compare the effects of market volatilities on Aurora Mobile and Glimpse 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 Glimpse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Glimpse.
Diversification Opportunities for Aurora Mobile and Glimpse
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aurora and Glimpse is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Glimpse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glimpse Group 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 Glimpse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glimpse Group has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Glimpse go up and down completely randomly.
Pair Corralation between Aurora Mobile and Glimpse
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 1.06 times more return on investment than Glimpse. However, Aurora Mobile is 1.06 times more volatile than Glimpse Group. It trades about 0.0 of its potential returns per unit of risk. Glimpse Group is currently generating about -0.03 per unit of risk. If you would invest 1,800 in Aurora Mobile on August 28, 2024 and sell it today you would lose (1,069) from holding Aurora Mobile or give up 59.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Mobile vs. Glimpse Group
Performance |
| Timeline |
| Aurora Mobile |
| Glimpse Group |
Aurora Mobile and Glimpse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Glimpse
The main advantage of trading using opposite Aurora Mobile and Glimpse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Glimpse 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 Glimpse will offset losses from the drop in Glimpse's long position.| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
| Glimpse vs. GigaCloud Technology Class | Glimpse vs. Arqit Quantum | Glimpse vs. Telos Corp | Glimpse vs. Cemtrex |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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