Correlation Between Rekor Systems and Aurora Mobile
Can any of the company-specific risk be diversified away by investing in both Rekor Systems 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 Rekor Systems and Aurora Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rekor Systems and Aurora Mobile, you can compare the effects of market volatilities on Rekor Systems 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 Rekor Systems with a short position of Aurora Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rekor Systems and Aurora Mobile.
Diversification Opportunities for Rekor Systems and Aurora Mobile
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rekor and Aurora is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Rekor Systems and Aurora Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Mobile and Rekor Systems 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 Rekor Systems 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 Rekor Systems i.e., Rekor Systems and Aurora Mobile go up and down completely randomly.
Pair Corralation between Rekor Systems and Aurora Mobile
Given the investment horizon of 90 days Rekor Systems is expected to generate 0.85 times more return on investment than Aurora Mobile. However, Rekor Systems is 1.18 times less risky than Aurora Mobile. It trades about 0.02 of its potential returns per unit of risk. Aurora Mobile is currently generating about 0.01 per unit of risk. If you would invest 118.00 in Rekor Systems on August 24, 2024 and sell it today you would lose (22.00) from holding Rekor Systems or give up 18.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rekor Systems vs. Aurora Mobile
Performance |
| Timeline |
| Rekor Systems |
| Aurora Mobile |
Rekor Systems and Aurora Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rekor Systems and Aurora Mobile
The main advantage of trading using opposite Rekor Systems and Aurora Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rekor Systems 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.| Rekor Systems vs. Aurora Mobile | Rekor Systems vs. Arqit Quantum | Rekor Systems vs. Bridgeline Digital | Rekor Systems vs. Repay Holdings Corp |
| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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