Correlation Between Aurora Optoelectronics and Arrow Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aurora Optoelectronics Co and Arrow Home Group, you can compare the effects of market volatilities on Aurora Optoelectronics and Arrow Home 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 Arrow Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Arrow Home.
Diversification Opportunities for Aurora Optoelectronics and Arrow Home
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurora and Arrow is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Arrow Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Home Group 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 Arrow Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Home Group has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Arrow Home go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Arrow Home
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to under-perform the Arrow Home. In addition to that, Aurora Optoelectronics is 1.57 times more volatile than Arrow Home Group. It trades about -0.07 of its total potential returns per unit of risk. Arrow Home Group is currently generating about -0.1 per unit of volatility. If you would invest 850.00 in Arrow Home Group on October 30, 2024 and sell it today you would lose (98.00) from holding Arrow Home Group or give up 11.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Optoelectronics Co vs. Arrow Home Group
Performance |
| Timeline |
| Aurora Optoelectronics |
| Arrow Home Group |
Aurora Optoelectronics and Arrow Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Arrow Home
The main advantage of trading using opposite Aurora Optoelectronics and Arrow Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Arrow Home 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 Arrow Home will offset losses from the drop in Arrow Home's long position.The idea behind Aurora Optoelectronics Co and Arrow Home Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Arrow Home vs. Beijing New Building | Arrow Home vs. Zhejiang Weixing New | Arrow Home vs. Zhuzhou Kibing Group | Arrow Home vs. Xiamen Wanli Stone |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |