Correlation Between Aurora Technology and WinVest Acquisition

Can any of the company-specific risk be diversified away by investing in both Aurora Technology and WinVest Acquisition 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 Aurora Technology and WinVest Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aurora Technology Acquisition and WinVest Acquisition Corp, you can compare the effects of market volatilities on Aurora Technology and WinVest Acquisition 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 Aurora Technology with a short position of WinVest Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Technology and WinVest Acquisition.

Diversification Opportunities for Aurora Technology and WinVest Acquisition

-0.1

Correlation Coefficient

Aurora Technology  WinVest Acquisition

Good diversification

The 3 months correlation between Aurora and WinVest is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Technology Acquisition and WinVest Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WinVest Acquisition Corp and Aurora Technology 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 Aurora Technology Acquisition are associated (or correlated) with WinVest Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WinVest Acquisition Corp has no effect on the direction of Aurora Technology i.e., Aurora Technology and WinVest Acquisition go up and down completely randomly.

Pair Corralation between Aurora Technology and WinVest Acquisition

If you would invest  14.00  in Aurora Technology Acquisition on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Aurora Technology Acquisition or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.17%
Values	Daily Returns

Aurora Technology Acquisition  vs.  WinVest Acquisition Corp

Aurora Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aurora Technology Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Aurora Technology is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

WinVest Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WinVest Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Aurora Technology and WinVest Acquisition

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

The idea behind Aurora Technology Acquisition and WinVest Acquisition Corp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.