Correlation Between AUPU Home and Beijing Originwater
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By analyzing existing cross correlation between AUPU Home Style and Beijing Originwater Technology, you can compare the effects of market volatilities on AUPU Home and Beijing Originwater 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 Beijing Originwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Beijing Originwater.
Diversification Opportunities for AUPU Home and Beijing Originwater
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AUPU and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Beijing Originwater Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Originwater 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 Beijing Originwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Originwater has no effect on the direction of AUPU Home i.e., AUPU Home and Beijing Originwater go up and down completely randomly.
Pair Corralation between AUPU Home and Beijing Originwater
Assuming the 90 days trading horizon AUPU Home is expected to generate 1.01 times less return on investment than Beijing Originwater. But when comparing it to its historical volatility, AUPU Home Style is 1.06 times less risky than Beijing Originwater. It trades about 0.03 of its potential returns per unit of risk. Beijing Originwater Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 466.00 in Beijing Originwater Technology on September 12, 2024 and sell it today you would earn a total of 124.00 from holding Beijing Originwater Technology or generate 26.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Beijing Originwater Technology
Performance |
| Timeline |
| AUPU Home Style |
| Beijing Originwater |
AUPU Home and Beijing Originwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Beijing Originwater
The main advantage of trading using opposite AUPU Home and Beijing Originwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home position performs unexpectedly, Beijing Originwater 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 Beijing Originwater will offset losses from the drop in Beijing Originwater's long position.| AUPU Home vs. Lutian Machinery Co | AUPU Home vs. PetroChina Co Ltd | AUPU Home vs. Bank of China | AUPU Home vs. Gansu Jiu Steel |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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