Correlation Between Aurora Optoelectronics and Hubei Forbon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aurora Optoelectronics Co and Hubei Forbon Technology, you can compare the effects of market volatilities on Aurora Optoelectronics and Hubei Forbon 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 Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Hubei Forbon.
Diversification Opportunities for Aurora Optoelectronics and Hubei Forbon
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurora and Hubei is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon 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 Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Hubei Forbon go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Hubei Forbon
Assuming the 90 days trading horizon Aurora Optoelectronics is expected to generate 1.48 times less return on investment than Hubei Forbon. In addition to that, Aurora Optoelectronics is 1.23 times more volatile than Hubei Forbon Technology. It trades about 0.01 of its total potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.02 per unit of volatility. If you would invest 774.00 in Hubei Forbon Technology on November 2, 2024 and sell it today you would earn a total of 56.00 from holding Hubei Forbon Technology or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Optoelectronics Co vs. Hubei Forbon Technology
Performance |
| Timeline |
| Aurora Optoelectronics |
| Hubei Forbon Technology |
Aurora Optoelectronics and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Hubei Forbon
The main advantage of trading using opposite Aurora Optoelectronics and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Hubei Forbon 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 Hubei Forbon will offset losses from the drop in Hubei Forbon's long position.| Aurora Optoelectronics vs. Qingdao Choho Industrial | Aurora Optoelectronics vs. Senci Electric Machinery | Aurora Optoelectronics vs. Hainan Mining Co | Aurora Optoelectronics vs. Ningbo Construction Co |
| Hubei Forbon vs. Spring Airlines Co | Hubei Forbon vs. Xiandai Investment Co | Hubei Forbon vs. GRIPM Advanced Materials | Hubei Forbon vs. Beijing Mainstreets Investment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |