Correlation Between Shenzhen Clou and Aurora Optoelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Clou Electronics and Aurora Optoelectronics Co, you can compare the effects of market volatilities on Shenzhen Clou 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 Shenzhen Clou with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Aurora Optoelectronics.
Diversification Opportunities for Shenzhen Clou and Aurora Optoelectronics
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Aurora is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Aurora Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Optoelectronics and Shenzhen Clou 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 Shenzhen Clou Electronics 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 Shenzhen Clou i.e., Shenzhen Clou and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Aurora Optoelectronics
Assuming the 90 days trading horizon Shenzhen Clou is expected to generate 7.77 times less return on investment than Aurora Optoelectronics. But when comparing it to its historical volatility, Shenzhen Clou Electronics is 1.41 times less risky than Aurora Optoelectronics. It trades about 0.03 of its potential returns per unit of risk. Aurora Optoelectronics Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 113.00 in Aurora Optoelectronics Co on August 31, 2024 and sell it today you would earn a total of 137.00 from holding Aurora Optoelectronics Co or generate 121.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Aurora Optoelectronics |
Shenzhen Clou and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Aurora Optoelectronics
The main advantage of trading using opposite Shenzhen Clou and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou 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.| Shenzhen Clou vs. Cultural Investment Holdings | Shenzhen Clou vs. Gome Telecom Equipment | Shenzhen Clou vs. Bus Online Co | Shenzhen Clou vs. Holitech Technology Co |
| Aurora Optoelectronics vs. Cultural Investment Holdings | Aurora Optoelectronics vs. Gome Telecom Equipment | Aurora Optoelectronics vs. Bus Online Co | Aurora Optoelectronics vs. Holitech Technology Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |