Correlation Between Yantai North and Aurora Optoelectronics
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By analyzing existing cross correlation between Yantai North Andre and Aurora Optoelectronics Co, you can compare the effects of market volatilities on Yantai North 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 Yantai North with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Aurora Optoelectronics.
Diversification Opportunities for Yantai North and Aurora Optoelectronics
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yantai and Aurora is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre and Aurora Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Optoelectronics and Yantai North 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 Yantai North Andre 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 Yantai North i.e., Yantai North and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between Yantai North and Aurora Optoelectronics
Assuming the 90 days trading horizon Yantai North Andre is expected to generate 1.05 times more return on investment than Aurora Optoelectronics. However, Yantai North is 1.05 times more volatile than Aurora Optoelectronics Co. It trades about 0.04 of its potential returns per unit of risk. Aurora Optoelectronics Co is currently generating about 0.03 per unit of risk. If you would invest 2,299 in Yantai North Andre on October 14, 2024 and sell it today you would earn a total of 410.00 from holding Yantai North Andre or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| Yantai North Andre |
| Aurora Optoelectronics |
Yantai North and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Aurora Optoelectronics
The main advantage of trading using opposite Yantai North and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North 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.| Yantai North vs. Wuhan Yangtze Communication | Yantai North vs. Ningxia Younglight Chemicals | Yantai North vs. Huizhou Speed Wireless | Yantai North vs. Sunwave Communications Co |
| Aurora Optoelectronics vs. Allmed Medical Products | Aurora Optoelectronics vs. China Reform Health | Aurora Optoelectronics vs. Zhongzhu Medical Holdings | Aurora Optoelectronics vs. Youngy Health Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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