Correlation Between Aofu Environmental and Ciwen Media
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aofu Environmental Technology and Ciwen Media Co, you can compare the effects of market volatilities on Aofu Environmental and Ciwen Media 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 Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Ciwen Media.
Diversification Opportunities for Aofu Environmental and Ciwen Media
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aofu and Ciwen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media 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 Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of Aofu Environmental i.e., Aofu Environmental and Ciwen Media go up and down completely randomly.
Pair Corralation between Aofu Environmental and Ciwen Media
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to under-perform the Ciwen Media. In addition to that, Aofu Environmental is 1.07 times more volatile than Ciwen Media Co. It trades about -0.15 of its total potential returns per unit of risk. Ciwen Media Co is currently generating about -0.14 per unit of volatility. If you would invest 662.00 in Ciwen Media Co on October 23, 2024 and sell it today you would lose (51.00) from holding Ciwen Media Co or give up 7.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. Ciwen Media Co
Performance |
| Timeline |
| Aofu Environmental |
| Ciwen Media |
Aofu Environmental and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Ciwen Media
The main advantage of trading using opposite Aofu Environmental and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.| Aofu Environmental vs. Ciwen Media Co | Aofu Environmental vs. Xiamen Jihong Package | Aofu Environmental vs. Chengdu B ray Media | Aofu Environmental vs. Guangdong Jinma Entertainment |
| Ciwen Media vs. Hubeiyichang Transportation Group | Ciwen Media vs. RoadMain T Co | Ciwen Media vs. State Grid InformationCommunication | Ciwen Media vs. Fujian Longzhou Transportation |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |