Correlation Between Tenable Holdings and Aurora Mobile
Can any of the company-specific risk be diversified away by investing in both Tenable Holdings 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 Tenable Holdings and Aurora Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenable Holdings and Aurora Mobile, you can compare the effects of market volatilities on Tenable Holdings 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 Tenable Holdings with a short position of Aurora Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenable Holdings and Aurora Mobile.
Diversification Opportunities for Tenable Holdings and Aurora Mobile
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tenable and Aurora is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tenable Holdings and Aurora Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Mobile and Tenable Holdings 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 Tenable Holdings 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 Tenable Holdings i.e., Tenable Holdings and Aurora Mobile go up and down completely randomly.
Pair Corralation between Tenable Holdings and Aurora Mobile
Given the investment horizon of 90 days Tenable Holdings is expected to generate 0.26 times more return on investment than Aurora Mobile. However, Tenable Holdings is 3.82 times less risky than Aurora Mobile. It trades about -0.05 of its potential returns per unit of risk. Aurora Mobile is currently generating about -0.18 per unit of risk. If you would invest 4,185 in Tenable Holdings on September 22, 2024 and sell it today you would lose (91.00) from holding Tenable Holdings or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenable Holdings vs. Aurora Mobile
Performance |
| Timeline |
| Tenable Holdings |
| Aurora Mobile |
Tenable Holdings and Aurora Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenable Holdings and Aurora Mobile
The main advantage of trading using opposite Tenable Holdings and Aurora Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenable Holdings 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.| Tenable Holdings vs. Qualys Inc | Tenable Holdings vs. Varonis Systems | Tenable Holdings vs. SentinelOne | Tenable Holdings vs. Rapid7 Inc |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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