Correlation Between Nuvei Corp and Aurora Mobile
Can any of the company-specific risk be diversified away by investing in both Nuvei Corp and Aurora Mobile 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 Nuvei Corp and Aurora Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuvei Corp and Aurora Mobile, you can compare the effects of market volatilities on Nuvei Corp and Aurora Mobile 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 Nuvei Corp with a short position of Aurora Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuvei Corp and Aurora Mobile.
Diversification Opportunities for Nuvei Corp and Aurora Mobile
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuvei and Aurora is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nuvei Corp and Aurora Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Mobile and Nuvei Corp 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 Nuvei Corp are associated (or correlated) with Aurora Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Mobile has no effect on the direction of Nuvei Corp i.e., Nuvei Corp and Aurora Mobile go up and down completely randomly.
Pair Corralation between Nuvei Corp and Aurora Mobile
Given the investment horizon of 90 days Nuvei Corp is expected to generate 20.59 times less return on investment than Aurora Mobile. But when comparing it to its historical volatility, Nuvei Corp is 34.66 times less risky than Aurora Mobile. It trades about 0.23 of its potential returns per unit of risk. Aurora Mobile is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 313.00 in Aurora Mobile on September 1, 2024 and sell it today you would earn a total of 505.00 from holding Aurora Mobile or generate 161.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Nuvei Corp vs. Aurora Mobile
Performance |
| Timeline |
| Nuvei Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Aurora Mobile |
Nuvei Corp and Aurora Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuvei Corp and Aurora Mobile
The main advantage of trading using opposite Nuvei Corp and Aurora Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuvei Corp position performs unexpectedly, Aurora Mobile 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 Aurora Mobile will offset losses from the drop in Aurora Mobile's long position.| Nuvei Corp vs. Robinhood Markets | Nuvei Corp vs. Palantir Technologies Class | Nuvei Corp vs. GigaCloud Technology Class | Nuvei Corp vs. Crowdstrike Holdings |
| Aurora Mobile vs. Palo Alto Networks | Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Pagaya Technologies | Aurora Mobile vs. Telos Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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