Correlation Between Haima Automobile and Aurora Optoelectronics
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By analyzing existing cross correlation between Haima Automobile Group and Aurora Optoelectronics Co, you can compare the effects of market volatilities on Haima Automobile and Aurora Optoelectronics 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 Haima Automobile with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Aurora Optoelectronics.
Diversification Opportunities for Haima Automobile and Aurora Optoelectronics
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Aurora is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Aurora Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Optoelectronics and Haima Automobile 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 Haima Automobile Group are associated (or correlated) with Aurora Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Optoelectronics has no effect on the direction of Haima Automobile i.e., Haima Automobile and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between Haima Automobile and Aurora Optoelectronics
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Aurora Optoelectronics. But the stock apears to be less risky and, when comparing its historical volatility, Haima Automobile Group is 1.01 times less risky than Aurora Optoelectronics. The stock trades about 0.0 of its potential returns per unit of risk. The Aurora Optoelectronics Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Aurora Optoelectronics Co on November 6, 2024 and sell it today you would lose (56.00) from holding Aurora Optoelectronics Co or give up 20.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| Haima Automobile |
| Aurora Optoelectronics |
Haima Automobile and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Aurora Optoelectronics
The main advantage of trading using opposite Haima Automobile and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Aurora Optoelectronics 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 Optoelectronics will offset losses from the drop in Aurora Optoelectronics' long position.| Haima Automobile vs. Ningbo Homelink Eco iTech | Haima Automobile vs. Easyhome New Retail | Haima Automobile vs. Mengtian Home Group | Haima Automobile vs. Songz Automobile Air |
| Aurora Optoelectronics vs. Hangzhou Zhongya Machinery | Aurora Optoelectronics vs. Anji Foodstuff Co | Aurora Optoelectronics vs. Yan Tai Shuang | Aurora Optoelectronics vs. Shenzhen Zhongzhuang Construction |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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