Correlation Between Aurora Optoelectronics and Nanjing OLO
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aurora Optoelectronics Co and Nanjing OLO Home, you can compare the effects of market volatilities on Aurora Optoelectronics and Nanjing OLO 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 Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Nanjing OLO.
Diversification Opportunities for Aurora Optoelectronics and Nanjing OLO
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aurora and Nanjing is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home 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 Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Nanjing OLO go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Nanjing OLO
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to generate 1.13 times more return on investment than Nanjing OLO. However, Aurora Optoelectronics is 1.13 times more volatile than Nanjing OLO Home. It trades about 0.01 of its potential returns per unit of risk. Nanjing OLO Home is currently generating about -0.01 per unit of risk. If you would invest 239.00 in Aurora Optoelectronics Co on October 28, 2024 and sell it today you would lose (18.00) from holding Aurora Optoelectronics Co or give up 7.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Optoelectronics Co vs. Nanjing OLO Home
Performance |
| Timeline |
| Aurora Optoelectronics |
| Nanjing OLO Home |
Aurora Optoelectronics and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Nanjing OLO
The main advantage of trading using opposite Aurora Optoelectronics and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO's long position.| Aurora Optoelectronics vs. Shanghai Ziyan Foods | Aurora Optoelectronics vs. Haima Automobile Group | Aurora Optoelectronics vs. Wintao Communications Co | Aurora Optoelectronics vs. Tongyu Communication |
| Nanjing OLO vs. Shenwu Energy Saving | Nanjing OLO vs. Xinjiang Baodi Mining | Nanjing OLO vs. Xiamen Bank Co | Nanjing OLO vs. Guosheng Financial Holding |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |