Correlation Between Aofu Environmental and Allwin Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aofu Environmental Technology and Allwin Telecommunication Co, you can compare the effects of market volatilities on Aofu Environmental and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Allwin Telecommunicatio.
Diversification Opportunities for Aofu Environmental and Allwin Telecommunicatio
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aofu and Allwin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Aofu Environmental i.e., Aofu Environmental and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Aofu Environmental and Allwin Telecommunicatio
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to generate 0.9 times more return on investment than Allwin Telecommunicatio. However, Aofu Environmental Technology is 1.11 times less risky than Allwin Telecommunicatio. It trades about 0.16 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about 0.07 per unit of risk. If you would invest 1,125 in Aofu Environmental Technology on September 5, 2024 and sell it today you would earn a total of 106.00 from holding Aofu Environmental Technology or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Aofu Environmental |
| Allwin Telecommunicatio |
Aofu Environmental and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Allwin Telecommunicatio
The main advantage of trading using opposite Aofu Environmental and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Aofu Environmental vs. Zijin Mining Group | Aofu Environmental vs. Baoshan Iron Steel | Aofu Environmental vs. Rongsheng Petrochemical Co | Aofu Environmental vs. Shandong Gold Mining |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |