Correlation Between Aurora Optoelectronics and Telling Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aurora Optoelectronics Co and Telling Telecommunication Holding, you can compare the effects of market volatilities on Aurora Optoelectronics and Telling Telecommunicatio 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 Aurora Optoelectronics with a short position of Telling Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Telling Telecommunicatio.
Diversification Opportunities for Aurora Optoelectronics and Telling Telecommunicatio
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aurora and Telling is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Telling Telecommunication Hold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telling Telecommunicatio and Aurora Optoelectronics 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 Aurora Optoelectronics Co are associated (or correlated) with Telling Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telling Telecommunicatio has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Telling Telecommunicatio go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Telling Telecommunicatio
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to generate 0.96 times more return on investment than Telling Telecommunicatio. However, Aurora Optoelectronics Co is 1.04 times less risky than Telling Telecommunicatio. It trades about 0.24 of its potential returns per unit of risk. Telling Telecommunication Holding is currently generating about 0.16 per unit of risk. If you would invest 156.00 in Aurora Optoelectronics Co on August 28, 2024 and sell it today you would earn a total of 92.00 from holding Aurora Optoelectronics Co or generate 58.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Optoelectronics Co vs. Telling Telecommunication Hold
Performance |
| Timeline |
| Aurora Optoelectronics |
| Telling Telecommunicatio |
Aurora Optoelectronics and Telling Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Telling Telecommunicatio
The main advantage of trading using opposite Aurora Optoelectronics and Telling Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Telling Telecommunicatio 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 Telling Telecommunicatio will offset losses from the drop in Telling Telecommunicatio's long position.| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |