Correlation Between AUPU Home and Central China
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By analyzing existing cross correlation between AUPU Home Style and Central China Land, you can compare the effects of market volatilities on AUPU Home and Central China 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 AUPU Home with a short position of Central China. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Central China.
Diversification Opportunities for AUPU Home and Central China
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AUPU and Central is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Central China Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central China Land and AUPU Home 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 AUPU Home Style are associated (or correlated) with Central China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central China Land has no effect on the direction of AUPU Home i.e., AUPU Home and Central China go up and down completely randomly.
Pair Corralation between AUPU Home and Central China
Assuming the 90 days trading horizon AUPU Home Style is expected to generate 1.08 times more return on investment than Central China. However, AUPU Home is 1.08 times more volatile than Central China Land. It trades about 0.15 of its potential returns per unit of risk. Central China Land is currently generating about 0.05 per unit of risk. If you would invest 1,043 in AUPU Home Style on September 1, 2024 and sell it today you would earn a total of 80.00 from holding AUPU Home Style or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Central China Land
Performance |
| Timeline |
| AUPU Home Style |
| Central China Land |
AUPU Home and Central China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Central China
The main advantage of trading using opposite AUPU Home and Central China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home position performs unexpectedly, Central China 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 Central China will offset losses from the drop in Central China's long position.| AUPU Home vs. Dongfeng Automobile Co | AUPU Home vs. Oriental Times Media | AUPU Home vs. Haima Automobile Group | AUPU Home vs. Focus Media Information |
| Central China vs. AUPU Home Style | Central China vs. Zoy Home Furnishing | Central China vs. Chengdu Xinzhu RoadBridge | Central China vs. Nanjing OLO Home |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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