Correlation Between Aurora Optoelectronics and Holitech Technology
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By analyzing existing cross correlation between Aurora Optoelectronics Co and Holitech Technology Co, you can compare the effects of market volatilities on Aurora Optoelectronics and Holitech Technology 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 Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Holitech Technology.
Diversification Opportunities for Aurora Optoelectronics and Holitech Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aurora and Holitech is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology 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 Holitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holitech Technology has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Holitech Technology go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Holitech Technology
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to generate 0.91 times more return on investment than Holitech Technology. However, Aurora Optoelectronics Co is 1.1 times less risky than Holitech Technology. It trades about 0.02 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.0 per unit of risk. If you would invest 230.00 in Aurora Optoelectronics Co on September 3, 2024 and sell it today you would earn a total of 20.00 from holding Aurora Optoelectronics Co or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Aurora Optoelectronics Co vs. Holitech Technology Co
Performance |
| Timeline |
| Aurora Optoelectronics |
| Holitech Technology |
Aurora Optoelectronics and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Holitech Technology
The main advantage of trading using opposite Aurora Optoelectronics and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Holitech Technology 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 Holitech Technology will offset losses from the drop in Holitech Technology's long position.| Aurora Optoelectronics vs. Cultural Investment Holdings | Aurora Optoelectronics vs. Gome Telecom Equipment | Aurora Optoelectronics vs. Bus Online Co | Aurora Optoelectronics vs. Holitech Technology Co |
| Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Postal Savings Bank | Holitech Technology vs. Bank of Communications |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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