Correlation Between Tongyu Communication and Aurora Optoelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongyu Communication and Aurora Optoelectronics Co, you can compare the effects of market volatilities on Tongyu Communication 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 Tongyu Communication with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Aurora Optoelectronics.
Diversification Opportunities for Tongyu Communication and Aurora Optoelectronics
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongyu and Aurora is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Aurora Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Optoelectronics and Tongyu Communication 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 Tongyu Communication 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 Tongyu Communication i.e., Tongyu Communication and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between Tongyu Communication and Aurora Optoelectronics
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 0.78 times more return on investment than Aurora Optoelectronics. However, Tongyu Communication is 1.29 times less risky than Aurora Optoelectronics. It trades about 0.19 of its potential returns per unit of risk. Aurora Optoelectronics Co is currently generating about -0.06 per unit of risk. If you would invest 1,337 in Tongyu Communication on November 6, 2024 and sell it today you would earn a total of 94.00 from holding Tongyu Communication or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| Tongyu Communication |
| Aurora Optoelectronics |
Tongyu Communication and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Aurora Optoelectronics
The main advantage of trading using opposite Tongyu Communication and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication 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.| Tongyu Communication vs. Citic Offshore Helicopter | Tongyu Communication vs. Fujian Wanchen Biotechnology | Tongyu Communication vs. GUOMAI Culture Media | Tongyu Communication vs. Shuhua Sports Co |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |