Correlation Between Aurora Optoelectronics and Duzhe Publishing
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By analyzing existing cross correlation between Aurora Optoelectronics Co and Duzhe Publishing Media, you can compare the effects of market volatilities on Aurora Optoelectronics and Duzhe Publishing 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 Duzhe Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and Duzhe Publishing.
Diversification Opportunities for Aurora Optoelectronics and Duzhe Publishing
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aurora and Duzhe is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and Duzhe Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duzhe Publishing Media 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 Duzhe Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duzhe Publishing Media has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and Duzhe Publishing go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and Duzhe Publishing
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to generate 1.52 times more return on investment than Duzhe Publishing. However, Aurora Optoelectronics is 1.52 times more volatile than Duzhe Publishing Media. It trades about 0.07 of its potential returns per unit of risk. Duzhe Publishing Media is currently generating about 0.01 per unit of risk. If you would invest 192.00 in Aurora Optoelectronics Co on October 14, 2024 and sell it today you would earn a total of 27.00 from holding Aurora Optoelectronics Co or generate 14.06% 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. Duzhe Publishing Media
Performance |
| Timeline |
| Aurora Optoelectronics |
| Duzhe Publishing Media |
Aurora Optoelectronics and Duzhe Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and Duzhe Publishing
The main advantage of trading using opposite Aurora Optoelectronics and Duzhe Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, Duzhe Publishing 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 Duzhe Publishing will offset losses from the drop in Duzhe Publishing's long position.| Aurora Optoelectronics vs. Allmed Medical Products | Aurora Optoelectronics vs. China Reform Health | Aurora Optoelectronics vs. Zhongzhu Medical Holdings | Aurora Optoelectronics vs. Youngy Health Co |
| Duzhe Publishing vs. Anhui Shiny Electronic | Duzhe Publishing vs. Aurora Optoelectronics Co | Duzhe Publishing vs. TongFu Microelectronics Co | Duzhe Publishing vs. Leyard Optoelectronic |
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