Correlation Between Aurora Optoelectronics and GigaDevice SemiconductorBei
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aurora Optoelectronics Co and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Aurora Optoelectronics and GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and GigaDevice SemiconductorBei.
Diversification Opportunities for Aurora Optoelectronics and GigaDevice SemiconductorBei
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aurora and GigaDevice is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaDevice SemiconductorBei has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to generate 1.15 times more return on investment than GigaDevice SemiconductorBei. However, Aurora Optoelectronics is 1.15 times more volatile than GigaDevice SemiconductorBeiji. It trades about 0.06 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.06 per unit of risk. If you would invest 185.00 in Aurora Optoelectronics Co on August 28, 2024 and sell it today you would earn a total of 72.00 from holding Aurora Optoelectronics Co or generate 38.92% 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. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Aurora Optoelectronics |
| GigaDevice SemiconductorBei |
Aurora Optoelectronics and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and GigaDevice SemiconductorBei
The main advantage of trading using opposite Aurora Optoelectronics and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei will offset losses from the drop in GigaDevice SemiconductorBei's long position.| Aurora Optoelectronics vs. Ming Yang Smart | Aurora Optoelectronics vs. 159681 | Aurora Optoelectronics vs. 159005 | Aurora Optoelectronics vs. Loctek Ergonomic 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |