Correlation Between VirnetX Holding and Aurora Mobile
Can any of the company-specific risk be diversified away by investing in both VirnetX Holding 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 VirnetX Holding and Aurora Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VirnetX Holding Corp and Aurora Mobile, you can compare the effects of market volatilities on VirnetX Holding 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 VirnetX Holding with a short position of Aurora Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of VirnetX Holding and Aurora Mobile.
Diversification Opportunities for VirnetX Holding and Aurora Mobile
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VirnetX and Aurora is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding VirnetX Holding Corp and Aurora Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Mobile and VirnetX Holding 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 VirnetX Holding 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 VirnetX Holding i.e., VirnetX Holding and Aurora Mobile go up and down completely randomly.
Pair Corralation between VirnetX Holding and Aurora Mobile
Considering the 90-day investment horizon VirnetX Holding Corp is expected to under-perform the Aurora Mobile. But the stock apears to be less risky and, when comparing its historical volatility, VirnetX Holding Corp is 4.44 times less risky than Aurora Mobile. The stock trades about -0.26 of its potential returns per unit of risk. The Aurora Mobile is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 726.00 in Aurora Mobile on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Aurora Mobile or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VirnetX Holding Corp vs. Aurora Mobile
Performance |
| Timeline |
| VirnetX Holding Corp |
| Aurora Mobile |
VirnetX Holding and Aurora Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VirnetX Holding and Aurora Mobile
The main advantage of trading using opposite VirnetX Holding and Aurora Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VirnetX Holding 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.| VirnetX Holding vs. Hub Cyber Security | VirnetX Holding vs. authID Inc | VirnetX Holding vs. Aurora Mobile | VirnetX Holding vs. Taoping |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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