Correlation Between AURORAC and AE

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

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

Diversification Opportunities for AURORAC and AE

0.0

Correlation Coefficient

AURORAC  AE

Pay attention - limited upside

The 3 months correlation between AURORAC and AE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AURORAC and AE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AE and AURORAC 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 AURORAC are associated (or correlated) with AE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AE has no effect on the direction of AURORAC i.e., AURORAC and AE go up and down completely randomly.

Pair Corralation between AURORAC and AE

If you would invest (100.00) in AURORAC on December 29, 2024 and sell it today you would earn a total of  100.00  from holding AURORAC or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AURORAC  vs.  AE

AURORAC

Risk-Adjusted Performance

Very Weak

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

AE

Risk-Adjusted Performance

Very Weak

Over the last 90 days AE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for AE shareholders.

Pair Trading with AURORAC and AE

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

The idea behind AURORAC and AE 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.