Correlation Between Fujian Oriental and Aofu Environmental
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By analyzing existing cross correlation between Fujian Oriental Silver and Aofu Environmental Technology, you can compare the effects of market volatilities on Fujian Oriental and Aofu Environmental 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 Fujian Oriental with a short position of Aofu Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Aofu Environmental.
Diversification Opportunities for Fujian Oriental and Aofu Environmental
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Aofu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Aofu Environmental Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aofu Environmental and Fujian Oriental 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 Fujian Oriental Silver are associated (or correlated) with Aofu Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aofu Environmental has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Aofu Environmental go up and down completely randomly.
Pair Corralation between Fujian Oriental and Aofu Environmental
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Aofu Environmental. In addition to that, Fujian Oriental is 1.04 times more volatile than Aofu Environmental Technology. It trades about -0.44 of its total potential returns per unit of risk. Aofu Environmental Technology is currently generating about -0.43 per unit of volatility. If you would invest 1,242 in Aofu Environmental Technology on October 15, 2024 and sell it today you would lose (289.00) from holding Aofu Environmental Technology or give up 23.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Aofu Environmental Technology
Performance |
| Timeline |
| Fujian Oriental Silver |
| Aofu Environmental |
Fujian Oriental and Aofu Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Aofu Environmental
The main advantage of trading using opposite Fujian Oriental and Aofu Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Aofu Environmental 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 Aofu Environmental will offset losses from the drop in Aofu Environmental's long position.| Fujian Oriental vs. Nexchip Semiconductor Corp | Fujian Oriental vs. Jiangsu Phoenix Publishing | Fujian Oriental vs. Shanghai V Test Semiconductor | Fujian Oriental vs. Southchip Semiconductor Technology |
| Aofu Environmental vs. Penyao Environmental Protection | Aofu Environmental vs. Shenwu Energy Saving | Aofu Environmental vs. Shenzhen MYS Environmental | Aofu Environmental vs. GreenTech Environmental Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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