Correlation Between Aofu Environmental and 5I5j Holding
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By analyzing existing cross correlation between Aofu Environmental Technology and 5I5j Holding Group, you can compare the effects of market volatilities on Aofu Environmental and 5I5j Holding 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 Aofu Environmental with a short position of 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and 5I5j Holding.
Diversification Opportunities for Aofu Environmental and 5I5j Holding
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aofu and 5I5j is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group and Aofu Environmental 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 Aofu Environmental Technology are associated (or correlated) with 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of Aofu Environmental i.e., Aofu Environmental and 5I5j Holding go up and down completely randomly.
Pair Corralation between Aofu Environmental and 5I5j Holding
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to generate 0.73 times more return on investment than 5I5j Holding. However, Aofu Environmental Technology is 1.37 times less risky than 5I5j Holding. It trades about -0.04 of its potential returns per unit of risk. 5I5j Holding Group is currently generating about -0.07 per unit of risk. If you would invest 1,044 in Aofu Environmental Technology on October 14, 2024 and sell it today you would lose (91.00) from holding Aofu Environmental Technology or give up 8.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. 5I5j Holding Group
Performance |
| Timeline |
| Aofu Environmental |
| 5I5j Holding Group |
Aofu Environmental and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and 5I5j Holding
The main advantage of trading using opposite Aofu Environmental and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.| Aofu Environmental vs. Penyao Environmental Protection | Aofu Environmental vs. Shenwu Energy Saving | Aofu Environmental vs. Shenzhen MYS Environmental | Aofu Environmental vs. GreenTech Environmental Co |
| 5I5j Holding vs. Heilongjiang Publishing Media | 5I5j Holding vs. Zhengping RoadBridge Constr | 5I5j Holding vs. Threes Company Media | 5I5j Holding vs. JiShi Media 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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