Correlation Between Aura FAT and Vision Sensing

Can any of the company-specific risk be diversified away by investing in both Aura FAT and Vision Sensing 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 Aura FAT and Vision Sensing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aura FAT Projects and Vision Sensing Acquisition, you can compare the effects of market volatilities on Aura FAT and Vision Sensing 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 Aura FAT with a short position of Vision Sensing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aura FAT and Vision Sensing.

Diversification Opportunities for Aura FAT and Vision Sensing

-0.24

Correlation Coefficient

Aura FAT  Vision Sensing

Very good diversification

The 3 months correlation between Aura and Vision is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aura FAT Projects and Vision Sensing Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vision Sensing Acqui and Aura FAT 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 Aura FAT Projects are associated (or correlated) with Vision Sensing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vision Sensing Acqui has no effect on the direction of Aura FAT i.e., Aura FAT and Vision Sensing go up and down completely randomly.

Pair Corralation between Aura FAT and Vision Sensing

If you would invest  1,170  in Vision Sensing Acquisition on September 19, 2024 and sell it today you would earn a total of  0.00  from holding Vision Sensing Acquisition or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aura FAT Projects  vs.  Vision Sensing Acquisition

Aura FAT Projects

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aura FAT Projects has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Aura FAT is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Vision Sensing Acqui

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Vision Sensing Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Vision Sensing is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Aura FAT and Vision Sensing

The main advantage of trading using opposite Aura FAT and Vision Sensing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aura FAT position performs unexpectedly, Vision Sensing 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 Vision Sensing will offset losses from the drop in Vision Sensing's long position.

The idea behind Aura FAT Projects and Vision Sensing Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.