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

0.25

Correlation Coefficient

Cellink AB  Aurora Spine

Modest diversification

The 3 months correlation between Cellink and Aurora is 0.25. 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. But the pink sheet apears to be less risky and, when comparing its historical volatility, Cellink AB is 1.79 times less risky than Aurora Spine. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Aurora Spine is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  25.00  in Aurora Spine on April 25, 2025 and sell it today you would earn a total of  0.00  from holding Aurora Spine or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Cellink AB  vs.  Aurora Spine

Cellink AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cellink AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Cellink AB is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Aurora Spine

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aurora Spine are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.