Correlation Between Cellink AB and Aurora Spine

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

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

Diversification Opportunities for Cellink AB and Aurora Spine

0.5

Correlation Coefficient

Cellink AB  Aurora Spine

Very weak diversification

The 3 months correlation between Cellink and Aurora is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cellink AB and Aurora Spine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Spine and Cellink AB 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 Cellink AB are associated (or correlated) with Aurora Spine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Spine has no effect on the direction of Cellink AB i.e., Cellink AB and Aurora Spine go up and down completely randomly.

Pair Corralation between Cellink AB and Aurora Spine

Assuming the 90 days horizon Cellink AB is expected to under-perform the Aurora Spine. In addition to that, Cellink AB is 1.0 times more volatile than Aurora Spine. It trades about -0.08 of its total potential returns per unit of risk. Aurora Spine is currently generating about -0.02 per unit of volatility. If you would invest  21.00  in Aurora Spine on May 27, 2025 and sell it today you would lose (2.00) from holding Aurora Spine or give up 9.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cellink AB  vs.  Aurora Spine

Cellink AB

Risk-Adjusted Performance

Weakest

Over the last 90 days Cellink AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Aurora Spine

Risk-Adjusted Performance

Weakest

Over the last 90 days Aurora Spine has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Aurora Spine is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cellink AB and Aurora Spine

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

The idea behind Cellink AB and Aurora Spine 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.