Correlation Between Aurora Optoelectronics and Sichuan Jinshi
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By analyzing existing cross correlation between Aurora Optoelectronics Co and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Aurora Optoelectronics and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Sichuan Jinshi.
Diversification Opportunities for Aurora Optoelectronics and Sichuan Jinshi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aurora and Sichuan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Sichuan Jinshi
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to generate 1.67 times more return on investment than Sichuan Jinshi. However, Aurora Optoelectronics is 1.67 times more volatile than Sichuan Jinshi Technology. It trades about 0.23 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about 0.2 per unit of risk. If you would invest 140.00 in Aurora Optoelectronics Co on September 2, 2024 and sell it today you would earn a total of 110.00 from holding Aurora Optoelectronics Co or generate 78.57% 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. Sichuan Jinshi Technology
Performance |
| Timeline |
| Aurora Optoelectronics |
| Sichuan Jinshi Technology |
Aurora Optoelectronics and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Sichuan Jinshi
The main advantage of trading using opposite Aurora Optoelectronics and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Aurora Optoelectronics vs. Zotye Automobile Co | Aurora Optoelectronics vs. Guangzhou Haige Communications | Aurora Optoelectronics vs. Gan Yuan Foods | Aurora Optoelectronics vs. Anhui Jianghuai Automobile |
| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Wanhua Chemical Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi vs. Shandong Gold Mining |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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