Correlation Between Aurora Optoelectronics and Beijing Venustech
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By analyzing existing cross correlation between Aurora Optoelectronics Co and Beijing Venustech, you can compare the effects of market volatilities on Aurora Optoelectronics and Beijing Venustech 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 Beijing Venustech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Beijing Venustech.
Diversification Opportunities for Aurora Optoelectronics and Beijing Venustech
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aurora and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Beijing Venustech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Venustech 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 Beijing Venustech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Venustech has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Beijing Venustech go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Beijing Venustech
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to generate 1.3 times more return on investment than Beijing Venustech. However, Aurora Optoelectronics is 1.3 times more volatile than Beijing Venustech. It trades about 0.2 of its potential returns per unit of risk. Beijing Venustech is currently generating about 0.0 per unit of risk. If you would invest 115.00 in Aurora Optoelectronics Co on September 3, 2024 and sell it today you would earn a total of 153.00 from holding Aurora Optoelectronics Co or generate 133.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Optoelectronics Co vs. Beijing Venustech
Performance |
| Timeline |
| Aurora Optoelectronics |
| Beijing Venustech |
Aurora Optoelectronics and Beijing Venustech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Beijing Venustech
The main advantage of trading using opposite Aurora Optoelectronics and Beijing Venustech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Beijing Venustech 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 Beijing Venustech will offset losses from the drop in Beijing Venustech'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 |
| Beijing Venustech vs. Jinyu Bio Technology Co | Beijing Venustech vs. Tianshui Huatian Technology | Beijing Venustech vs. Xinjiang Baodi Mining | Beijing Venustech vs. Chengtun Mining Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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