Correlation Between Aurora Mobile and Check Point
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Check Point 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 Check Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Check Point Software, you can compare the effects of market volatilities on Aurora Mobile and Check Point 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 Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Check Point.
Diversification Opportunities for Aurora Mobile and Check Point
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurora and Check is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software 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 Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Check Point go up and down completely randomly.
Pair Corralation between Aurora Mobile and Check Point
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 6.08 times more return on investment than Check Point. However, Aurora Mobile is 6.08 times more volatile than Check Point Software. It trades about 0.05 of its potential returns per unit of risk. Check Point Software is currently generating about 0.08 per unit of risk. If you would invest 551.00 in Aurora Mobile on March 21, 2025 and sell it today you would earn a total of 524.00 from holding Aurora Mobile or generate 95.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Mobile vs. Check Point Software
Performance |
| Timeline |
| Aurora Mobile |
| Check Point Software |
Aurora Mobile and Check Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Check Point
The main advantage of trading using opposite Aurora Mobile and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point's long position.| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
| Check Point vs. Rapid7 Inc | Check Point vs. Tenable Holdings | Check Point vs. Okta Inc | Check Point vs. WixCom |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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