Correlation Between Aurora Optoelectronics and ClearShares Piton
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By analyzing existing cross correlation between Aurora Optoelectronics Co and ClearShares Piton Intermediate, you can compare the effects of market volatilities on Aurora Optoelectronics and ClearShares Piton 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 ClearShares Piton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Optoelectronics and ClearShares Piton.
Diversification Opportunities for Aurora Optoelectronics and ClearShares Piton
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aurora and ClearShares is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Optoelectronics Co and ClearShares Piton Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearShares Piton 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 ClearShares Piton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearShares Piton has no effect on the direction of Aurora Optoelectronics i.e., Aurora Optoelectronics and ClearShares Piton go up and down completely randomly.
Pair Corralation between Aurora Optoelectronics and ClearShares Piton
Assuming the 90 days trading horizon Aurora Optoelectronics Co is expected to generate 35.94 times more return on investment than ClearShares Piton. However, Aurora Optoelectronics is 35.94 times more volatile than ClearShares Piton Intermediate. It trades about 0.17 of its potential returns per unit of risk. ClearShares Piton Intermediate is currently generating about -0.13 per unit of risk. If you would invest 224.00 in Aurora Optoelectronics Co on August 26, 2024 and sell it today you would earn a total of 43.00 from holding Aurora Optoelectronics Co or generate 19.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Optoelectronics Co vs. ClearShares Piton Intermediate
Performance |
| Timeline |
| Aurora Optoelectronics |
| ClearShares Piton |
Aurora Optoelectronics and ClearShares Piton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Optoelectronics and ClearShares Piton
The main advantage of trading using opposite Aurora Optoelectronics and ClearShares Piton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Optoelectronics position performs unexpectedly, ClearShares Piton 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 ClearShares Piton will offset losses from the drop in ClearShares Piton's long position.| Aurora Optoelectronics vs. Ming Yang Smart | Aurora Optoelectronics vs. 159681 | Aurora Optoelectronics vs. 159005 | Aurora Optoelectronics vs. Loctek Ergonomic Technology |
| ClearShares Piton vs. iShares MSCI EAFE | ClearShares Piton vs. iShares iBoxx Investment | ClearShares Piton vs. iShares TIPS Bond | ClearShares Piton vs. iShares 1 3 Year |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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