Correlation Between Protext Mobility and Aurora Spine

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

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

Diversification Opportunities for Protext Mobility and Aurora Spine

0.6

Correlation Coefficient

Protext Mobility  Aurora Spine

Poor diversification

The 3 months correlation between Protext and Aurora is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Protext Mobility and Aurora Spine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Spine and Protext Mobility 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 Protext Mobility 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 Protext Mobility i.e., Protext Mobility and Aurora Spine go up and down completely randomly.

Pair Corralation between Protext Mobility and Aurora Spine

Given the investment horizon of 90 days Protext Mobility is expected to under-perform the Aurora Spine. In addition to that, Protext Mobility is 1.57 times more volatile than Aurora Spine. It trades about -0.01 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  22.00  in Aurora Spine on June 28, 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	Significant
Accuracy	100.0%
Values	Daily Returns

Protext Mobility  vs.  Aurora Spine

Protext Mobility

Risk-Adjusted Performance

Weakest

Over the last 90 days Protext Mobility has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

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 Protext Mobility and Aurora Spine

The main advantage of trading using opposite Protext Mobility and Aurora Spine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protext Mobility 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 Protext Mobility 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.