Correlation Between Aurora Mobile and Synopsys

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

By analyzing existing cross correlation between Aurora Mobile and Synopsys, you can compare the effects of market volatilities on Aurora Mobile and Synopsys 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 Synopsys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Synopsys.

Diversification Opportunities for Aurora Mobile and Synopsys

0.74

Correlation Coefficient

Aurora Mobile  Synopsys

Poor diversification

The 3 months correlation between Aurora and Synopsys is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Synopsys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synopsys 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 Synopsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synopsys has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Synopsys go up and down completely randomly.

Pair Corralation between Aurora Mobile and Synopsys

Allowing for the 90-day total investment horizon Aurora Mobile is expected to under-perform the Synopsys. But the stock apears to be less risky and, when comparing its historical volatility, Aurora Mobile is 1.81 times less risky than Synopsys. The stock trades about -0.2 of its potential returns per unit of risk. The Synopsys is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  59,600  in Synopsys on August 26, 2025 and sell it today you would lose (19,137) from holding Synopsys or give up 32.11% of portfolio value over 90 days.

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

Aurora Mobile  vs.  Synopsys

Aurora Mobile

Risk-Adjusted Performance

Weakest

Over the last 90 days Aurora Mobile 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 technical and fundamental indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Synopsys

Risk-Adjusted Performance

Weakest

Over the last 90 days Synopsys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Aurora Mobile and Synopsys

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

The idea behind Aurora Mobile and Synopsys 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.