Correlation Between Aurora Optoelectronics and Cultural Investment
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By analyzing existing cross correlation between Aurora Optoelectronics Co and Cultural Investment Holdings, you can compare the effects of market volatilities on Aurora Optoelectronics and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Cultural Investment.
Diversification Opportunities for Aurora Optoelectronics and Cultural Investment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aurora and Cultural is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Cultural Investment go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Cultural Investment
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to generate 1.68 times more return on investment than Cultural Investment. However, Aurora Optoelectronics is 1.68 times more volatile than Cultural Investment Holdings. It trades about 0.27 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.13 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 144.00 from holding Aurora Optoelectronics Co or generate 102.86% 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. Cultural Investment Holdings
Performance |
| Timeline |
| Aurora Optoelectronics |
| Cultural Investment |
Aurora Optoelectronics and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Cultural Investment
The main advantage of trading using opposite Aurora Optoelectronics and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Aurora Optoelectronics vs. Agricultural Bank of | Aurora Optoelectronics vs. Industrial and Commercial | Aurora Optoelectronics vs. Bank of China | Aurora Optoelectronics vs. PetroChina Co Ltd |
| Cultural Investment vs. Kweichow Moutai Co | Cultural Investment vs. Shenzhen Mindray Bio Medical | Cultural Investment vs. G bits Network Technology | Cultural Investment vs. Beijing Roborock Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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