Correlation Between Ye Chiu and Aofu Environmental
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By analyzing existing cross correlation between Ye Chiu Metal and Aofu Environmental Technology, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Aofu Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Aofu Environmental.
Diversification Opportunities for Ye Chiu and Aofu Environmental
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Aofu is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Aofu Environmental Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aofu Environmental and Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Aofu Environmental go up and down completely randomly.
Pair Corralation between Ye Chiu and Aofu Environmental
Assuming the 90 days trading horizon Ye Chiu is expected to generate 6.41 times less return on investment than Aofu Environmental. But when comparing it to its historical volatility, Ye Chiu Metal is 1.42 times less risky than Aofu Environmental. It trades about 0.02 of its potential returns per unit of risk. Aofu Environmental Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,132 in Aofu Environmental Technology on September 1, 2024 and sell it today you would earn a total of 48.00 from holding Aofu Environmental Technology or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Aofu Environmental Technology
Performance |
| Timeline |
| Ye Chiu Metal |
| Aofu Environmental |
Ye Chiu and Aofu Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Aofu Environmental
The main advantage of trading using opposite Ye Chiu and Aofu Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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