Correlation Between Yindu Kitchen and Aurora Optoelectronics
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Aurora Optoelectronics Co, you can compare the effects of market volatilities on Yindu Kitchen 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 Yindu Kitchen with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Aurora Optoelectronics.
Diversification Opportunities for Yindu Kitchen and Aurora Optoelectronics
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Yindu and Aurora is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Aurora Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Optoelectronics and Yindu Kitchen 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 Yindu Kitchen Equipment 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 Yindu Kitchen i.e., Yindu Kitchen and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Aurora Optoelectronics
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to under-perform the Aurora Optoelectronics. But the stock apears to be less risky and, when comparing its historical volatility, Yindu Kitchen Equipment is 1.59 times less risky than Aurora Optoelectronics. The stock trades about -0.01 of its potential returns per unit of risk. The Aurora Optoelectronics Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 212.00 in Aurora Optoelectronics Co on August 25, 2024 and sell it today you would earn a total of 55.00 from holding Aurora Optoelectronics Co or generate 25.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Aurora Optoelectronics |
Yindu Kitchen and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Aurora Optoelectronics
The main advantage of trading using opposite Yindu Kitchen and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen 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.| Yindu Kitchen vs. Biwin Storage Technology | Yindu Kitchen vs. PetroChina Co Ltd | Yindu Kitchen vs. Industrial and Commercial | Yindu Kitchen vs. China Construction Bank |
| Aurora Optoelectronics vs. Ming Yang Smart | Aurora Optoelectronics vs. 159681 | Aurora Optoelectronics vs. 159005 | Aurora Optoelectronics vs. Loctek Ergonomic Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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