Correlation Between Aurora Mobile and Plyzer Technologies

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

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

Diversification Opportunities for Aurora Mobile and Plyzer Technologies

0.0

Correlation Coefficient

Aurora Mobile  Plyzer Technologies

Pay attention - limited upside

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

Pair Corralation between Aurora Mobile and Plyzer Technologies

If you would invest  422.00  in Aurora Mobile on September 1, 2024 and sell it today you would earn a total of  396.00  from holding Aurora Mobile or generate 93.84% return on investment over 90 days.

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

Aurora Mobile  vs.  Plyzer Technologies

Aurora Mobile

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aurora Mobile are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal technical and fundamental indicators, Aurora Mobile reported solid returns over the last few months and may actually be approaching a breakup point.

Plyzer Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Plyzer Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Plyzer Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aurora Mobile and Plyzer Technologies

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

The idea behind Aurora Mobile and Plyzer Technologies 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.