Correlation Between Sichuan Fulin and Aurora Optoelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sichuan Fulin Transportation and Aurora Optoelectronics Co, you can compare the effects of market volatilities on Sichuan Fulin 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 Sichuan Fulin with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Aurora Optoelectronics.
Diversification Opportunities for Sichuan Fulin and Aurora Optoelectronics
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Aurora is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Aurora Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Optoelectronics and Sichuan Fulin 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 Sichuan Fulin Transportation 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 Sichuan Fulin i.e., Sichuan Fulin and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Aurora Optoelectronics
Assuming the 90 days trading horizon Sichuan Fulin is expected to generate 1.2 times less return on investment than Aurora Optoelectronics. But when comparing it to its historical volatility, Sichuan Fulin Transportation is 2.65 times less risky than Aurora Optoelectronics. It trades about 0.41 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 224.00 in Aurora Optoelectronics Co on September 5, 2024 and sell it today you would earn a total of 47.00 from holding Aurora Optoelectronics Co or generate 20.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Aurora Optoelectronics |
Sichuan Fulin and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Aurora Optoelectronics
The main advantage of trading using opposite Sichuan Fulin and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin 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.| Sichuan Fulin vs. Kweichow Moutai Co | Sichuan Fulin vs. NAURA Technology Group | Sichuan Fulin vs. Zhejiang Orient Gene | Sichuan Fulin vs. APT Medical |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |