Correlation Between Aurora Optoelectronics and Chongqing Brewery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aurora Optoelectronics Co and Chongqing Brewery Co, you can compare the effects of market volatilities on Aurora Optoelectronics and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Chongqing Brewery.
Diversification Opportunities for Aurora Optoelectronics and Chongqing Brewery
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aurora and Chongqing is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Chongqing Brewery
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to under-perform the Chongqing Brewery. In addition to that, Aurora Optoelectronics is 1.63 times more volatile than Chongqing Brewery Co. It trades about -0.2 of its total potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.09 per unit of volatility. If you would invest 5,876 in Chongqing Brewery Co on January 25, 2025 and sell it today you would lose (230.00) from holding Chongqing Brewery Co or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Optoelectronics Co vs. Chongqing Brewery Co
Performance |
| Timeline |
| Aurora Optoelectronics |
| Chongqing Brewery |
Aurora Optoelectronics and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Chongqing Brewery
The main advantage of trading using opposite Aurora Optoelectronics and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Aurora Optoelectronics vs. Industrial and Commercial | Aurora Optoelectronics vs. Agricultural Bank of | Aurora Optoelectronics vs. China Construction Bank | Aurora Optoelectronics vs. Bank of China |
| Chongqing Brewery vs. Guangdong Shenglu Telecommunication | Chongqing Brewery vs. Spring Airlines Co | Chongqing Brewery vs. Thunder Software Technology | Chongqing Brewery vs. Guangzhou Haige 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |