Correlation Between 159681 and Aurora Optoelectronics
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By analyzing existing cross correlation between 159681 and Aurora Optoelectronics Co, you can compare the effects of market volatilities on 159681 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 159681 with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Aurora Optoelectronics.
Diversification Opportunities for 159681 and Aurora Optoelectronics
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Aurora is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Aurora Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Optoelectronics and 159681 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 159681 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 159681 i.e., 159681 and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between 159681 and Aurora Optoelectronics
Assuming the 90 days trading horizon 159681 is expected to generate 3.59 times less return on investment than Aurora Optoelectronics. But when comparing it to its historical volatility, 159681 is 1.49 times less risky than Aurora Optoelectronics. It trades about 0.01 of its potential returns per unit of risk. Aurora Optoelectronics Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Aurora Optoelectronics Co on August 25, 2024 and sell it today you would lose (3.00) from holding Aurora Optoelectronics Co or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.49% |
| Values | Daily Returns |
159681 vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| 159681 |
| Aurora Optoelectronics |
159681 and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Aurora Optoelectronics
The main advantage of trading using opposite 159681 and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 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.| 159681 vs. Shenzhen MTC Co | 159681 vs. Ming Yang Smart | 159681 vs. Changzhou Almaden Co | 159681 vs. 159005 |
| Aurora Optoelectronics vs. Ming Yang Smart | Aurora Optoelectronics vs. 159681 | Aurora Optoelectronics vs. 159005 | Aurora Optoelectronics vs. Loctek Ergonomic Technology |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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