Correlation Between Aurora Optoelectronics and Poly Real
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aurora Optoelectronics Co and Poly Real Estate, you can compare the effects of market volatilities on Aurora Optoelectronics and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Poly Real.
Diversification Opportunities for Aurora Optoelectronics and Poly Real
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurora and Poly is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Poly Real go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Poly Real
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to generate 1.51 times more return on investment than Poly Real. However, Aurora Optoelectronics is 1.51 times more volatile than Poly Real Estate. It trades about 0.29 of its potential returns per unit of risk. Poly Real Estate is currently generating about 0.17 per unit of risk. If you would invest 140.00 in Aurora Optoelectronics Co on September 12, 2024 and sell it today you would earn a total of 172.00 from holding Aurora Optoelectronics Co or generate 122.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Aurora Optoelectronics Co vs. Poly Real Estate
Performance |
| Timeline |
| Aurora Optoelectronics |
| Poly Real Estate |
Aurora Optoelectronics and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Poly Real
The main advantage of trading using opposite Aurora Optoelectronics and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Aurora Optoelectronics vs. Ming Yang Smart | Aurora Optoelectronics vs. 159681 | Aurora Optoelectronics vs. 159005 | Aurora Optoelectronics vs. Loctek Ergonomic Technology |
| Poly Real vs. Guangzhou Ruoyuchen Information | Poly Real vs. BTG Hotels Group | Poly Real vs. Shenzhen SDG Information | Poly Real vs. Tongding Interconnection Information |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |