Correlation Between 5I5j Holding and Aofu Environmental
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By analyzing existing cross correlation between 5I5j Holding Group and Aofu Environmental Technology, you can compare the effects of market volatilities on 5I5j Holding and Aofu Environmental 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 5I5j Holding with a short position of Aofu Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5I5j Holding and Aofu Environmental.
Diversification Opportunities for 5I5j Holding and Aofu Environmental
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 5I5j and Aofu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding 5I5j Holding Group and Aofu Environmental Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aofu Environmental and 5I5j Holding 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 5I5j Holding Group are associated (or correlated) with Aofu Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aofu Environmental has no effect on the direction of 5I5j Holding i.e., 5I5j Holding and Aofu Environmental go up and down completely randomly.
Pair Corralation between 5I5j Holding and Aofu Environmental
Assuming the 90 days trading horizon 5I5j Holding Group is expected to generate 1.37 times more return on investment than Aofu Environmental. However, 5I5j Holding is 1.37 times more volatile than Aofu Environmental Technology. It trades about 0.07 of its potential returns per unit of risk. Aofu Environmental Technology is currently generating about 0.05 per unit of risk. If you would invest 244.00 in 5I5j Holding Group on September 27, 2024 and sell it today you would earn a total of 74.00 from holding 5I5j Holding Group or generate 30.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
5I5j Holding Group vs. Aofu Environmental Technology
Performance |
| Timeline |
| 5I5j Holding Group |
| Aofu Environmental |
5I5j Holding and Aofu Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 5I5j Holding and Aofu Environmental
The main advantage of trading using opposite 5I5j Holding and Aofu Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5I5j Holding position performs unexpectedly, Aofu Environmental 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 Aofu Environmental will offset losses from the drop in Aofu Environmental's long position.| 5I5j Holding vs. Nanjing Putian Telecommunications | 5I5j Holding vs. Guangdong Marubi Biotechnology | 5I5j Holding vs. Iat Automobile Technology | 5I5j Holding vs. Songz Automobile Air |
| Aofu Environmental vs. Hunan TV Broadcast | Aofu Environmental vs. Ningxia Xiaoming Agriculture | Aofu Environmental vs. Anhui Transport Consulting | Aofu Environmental vs. Chengdu Xinzhu RoadBridge |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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