Correlation Between Dongguan Tarry and Aurora Optoelectronics
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Aurora Optoelectronics Co, you can compare the effects of market volatilities on Dongguan Tarry 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 Dongguan Tarry with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Aurora Optoelectronics.
Diversification Opportunities for Dongguan Tarry and Aurora Optoelectronics
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongguan and Aurora is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry 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 Dongguan Tarry 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 Dongguan Tarry 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 Dongguan Tarry i.e., Dongguan Tarry and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Aurora Optoelectronics
Assuming the 90 days trading horizon Dongguan Tarry is expected to generate 1.28 times less return on investment than Aurora Optoelectronics. In addition to that, Dongguan Tarry is 1.05 times more volatile than Aurora Optoelectronics Co. It trades about 0.08 of its total potential returns per unit of risk. Aurora Optoelectronics Co is currently generating about 0.11 per unit of volatility. If you would invest 150.00 in Aurora Optoelectronics Co on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Aurora Optoelectronics Co or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Aurora Optoelectronics |
Dongguan Tarry and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Aurora Optoelectronics
The main advantage of trading using opposite Dongguan Tarry and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry 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.| Dongguan Tarry vs. Cultural Investment Holdings | Dongguan Tarry vs. Gome Telecom Equipment | Dongguan Tarry vs. Bus Online Co | Dongguan Tarry 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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