Correlation Between Shanghai Zhangjiang and Aurora Optoelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Zhangjiang Hi Tech and Aurora Optoelectronics Co, you can compare the effects of market volatilities on Shanghai Zhangjiang and Aurora Optoelectronics 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 Shanghai Zhangjiang with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Zhangjiang and Aurora Optoelectronics.
Diversification Opportunities for Shanghai Zhangjiang and Aurora Optoelectronics
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Aurora is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Zhangjiang Hi Tech and Aurora Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Optoelectronics and Shanghai Zhangjiang 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 Shanghai Zhangjiang Hi Tech are associated (or correlated) with Aurora Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Optoelectronics has no effect on the direction of Shanghai Zhangjiang i.e., Shanghai Zhangjiang and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between Shanghai Zhangjiang and Aurora Optoelectronics
Assuming the 90 days trading horizon Shanghai Zhangjiang Hi Tech is expected to generate 1.04 times more return on investment than Aurora Optoelectronics. However, Shanghai Zhangjiang is 1.04 times more volatile than Aurora Optoelectronics Co. It trades about 0.07 of its potential returns per unit of risk. Aurora Optoelectronics Co is currently generating about 0.02 per unit of risk. If you would invest 1,221 in Shanghai Zhangjiang Hi Tech on September 2, 2024 and sell it today you would earn a total of 1,626 from holding Shanghai Zhangjiang Hi Tech or generate 133.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Zhangjiang Hi Tech vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| Shanghai Zhangjiang |
| Aurora Optoelectronics |
Shanghai Zhangjiang and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Zhangjiang and Aurora Optoelectronics
The main advantage of trading using opposite Shanghai Zhangjiang and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Zhangjiang position performs unexpectedly, Aurora Optoelectronics 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 Aurora Optoelectronics will offset losses from the drop in Aurora Optoelectronics' long position.| Shanghai Zhangjiang vs. Shanghai Yanpu Metal | Shanghai Zhangjiang vs. Guangdong Jingyi Metal | Shanghai Zhangjiang vs. Youyou Foods Co | Shanghai Zhangjiang vs. Suzhou Weizhixiang Food |
| Aurora Optoelectronics vs. Zotye Automobile Co | Aurora Optoelectronics vs. Guangzhou Haige Communications | Aurora Optoelectronics vs. Gan Yuan Foods | Aurora Optoelectronics vs. Anhui Jianghuai Automobile |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |