Correlation Between Ningbo Jianan and Aurora Optoelectronics
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Aurora Optoelectronics Co, you can compare the effects of market volatilities on Ningbo Jianan 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 Ningbo Jianan with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Aurora Optoelectronics.
Diversification Opportunities for Ningbo Jianan and Aurora Optoelectronics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Aurora is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan 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 Ningbo Jianan 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 Ningbo Jianan 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 Ningbo Jianan i.e., Ningbo Jianan and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Aurora Optoelectronics
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 1.18 times more return on investment than Aurora Optoelectronics. However, Ningbo Jianan is 1.18 times more volatile than Aurora Optoelectronics Co. It trades about 0.04 of its potential returns per unit of risk. Aurora Optoelectronics Co is currently generating about 0.02 per unit of risk. If you would invest 1,530 in Ningbo Jianan Electronics on August 24, 2024 and sell it today you would earn a total of 720.00 from holding Ningbo Jianan Electronics or generate 47.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Aurora Optoelectronics |
Ningbo Jianan and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Aurora Optoelectronics
The main advantage of trading using opposite Ningbo Jianan and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan 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.| Ningbo Jianan vs. Ming Yang Smart | Ningbo Jianan vs. 159005 | Ningbo Jianan vs. Loctek Ergonomic Technology | Ningbo Jianan vs. Xiamen East Asia |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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