Correlation Between Aurora Mobile and Cloudflare
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Cloudflare 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 Cloudflare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Cloudflare, you can compare the effects of market volatilities on Aurora Mobile and Cloudflare 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 Cloudflare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Cloudflare.
Diversification Opportunities for Aurora Mobile and Cloudflare
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurora and Cloudflare is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Cloudflare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudflare 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 Cloudflare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloudflare has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Cloudflare go up and down completely randomly.
Pair Corralation between Aurora Mobile and Cloudflare
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 3.57 times more return on investment than Cloudflare. However, Aurora Mobile is 3.57 times more volatile than Cloudflare. It trades about 0.09 of its potential returns per unit of risk. Cloudflare is currently generating about 0.11 per unit of risk. If you would invest 265.00 in Aurora Mobile on March 22, 2025 and sell it today you would earn a total of 823.75 from holding Aurora Mobile or generate 310.85% 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. Cloudflare
Performance |
| Timeline |
| Aurora Mobile |
| Cloudflare |
Aurora Mobile and Cloudflare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Mobile and Cloudflare
The main advantage of trading using opposite Aurora Mobile and Cloudflare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Cloudflare 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 Cloudflare will offset losses from the drop in Cloudflare's long position.| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
| Cloudflare vs. Palo Alto Networks | Cloudflare vs. Zscaler | Cloudflare vs. Okta Inc | Cloudflare vs. Adobe Systems Incorporated |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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