Correlation Between RELIEF THERAPEUTICS and Aurora Investment

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

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

Diversification Opportunities for RELIEF THERAPEUTICS and Aurora Investment

-0.26

Correlation Coefficient

RELIEF THERAPEUTICS  Aurora Investment

Very good diversification

The 3 months correlation between RELIEF and Aurora is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding RELIEF THERAPEUTICS Holding and Aurora Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Investment Trust and RELIEF THERAPEUTICS 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 RELIEF THERAPEUTICS Holding are associated (or correlated) with Aurora Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Investment Trust has no effect on the direction of RELIEF THERAPEUTICS i.e., RELIEF THERAPEUTICS and Aurora Investment go up and down completely randomly.

Pair Corralation between RELIEF THERAPEUTICS and Aurora Investment

Assuming the 90 days trading horizon RELIEF THERAPEUTICS Holding is expected to generate 7.89 times more return on investment than Aurora Investment. However, RELIEF THERAPEUTICS is 7.89 times more volatile than Aurora Investment Trust. It trades about 0.02 of its potential returns per unit of risk. Aurora Investment Trust is currently generating about 0.1 per unit of risk. If you would invest  242.00  in RELIEF THERAPEUTICS Holding on April 20, 2025 and sell it today you would lose (19.00) from holding RELIEF THERAPEUTICS Holding or give up 7.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

RELIEF THERAPEUTICS Holding  vs.  Aurora Investment Trust

RELIEF THERAPEUTICS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in RELIEF THERAPEUTICS Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, RELIEF THERAPEUTICS may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Aurora Investment Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aurora Investment Trust are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Aurora Investment is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with RELIEF THERAPEUTICS and Aurora Investment

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

The idea behind RELIEF THERAPEUTICS Holding and Aurora Investment Trust 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 Transaction History module to view history of all your transactions and understand their impact on performance.