Correlation Between Wejo Group and Aurora Mobile
Can any of the company-specific risk be diversified away by investing in both Wejo Group 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 Wejo Group and Aurora Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wejo Group Limited and Aurora Mobile, you can compare the effects of market volatilities on Wejo Group 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 Wejo Group with a short position of Aurora Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wejo Group and Aurora Mobile.
Diversification Opportunities for Wejo Group and Aurora Mobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wejo and Aurora is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wejo Group Limited and Aurora Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Mobile and Wejo Group 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 Wejo Group Limited 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 Wejo Group i.e., Wejo Group and Aurora Mobile go up and down completely randomly.
Pair Corralation between Wejo Group and Aurora Mobile
Assuming the 90 days horizon Wejo Group Limited is expected to generate 4.17 times more return on investment than Aurora Mobile. However, Wejo Group is 4.17 times more volatile than Aurora Mobile. It trades about 0.06 of its potential returns per unit of risk. Aurora Mobile is currently generating about 0.0 per unit of risk. If you would invest 15.00 in Wejo Group Limited on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Wejo Group Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 31.85% |
| Values | Daily Returns |
Wejo Group Limited vs. Aurora Mobile
Performance |
| Timeline |
| Wejo Group Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aurora Mobile |
Wejo Group and Aurora Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wejo Group and Aurora Mobile
The main advantage of trading using opposite Wejo Group and Aurora Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wejo Group 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.| Wejo Group vs. Arqit Quantum Warrants | Wejo Group vs. Xos Equity Warrants | Wejo Group vs. Aurora Innovation |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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