Correlation Between Aofu Environmental and Do Fluoride
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By analyzing existing cross correlation between Aofu Environmental Technology and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Aofu Environmental and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Do Fluoride.
Diversification Opportunities for Aofu Environmental and Do Fluoride
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aofu and 002407 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Aofu Environmental i.e., Aofu Environmental and Do Fluoride go up and down completely randomly.
Pair Corralation between Aofu Environmental and Do Fluoride
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to generate 1.08 times more return on investment than Do Fluoride. However, Aofu Environmental is 1.08 times more volatile than Do Fluoride Chemicals Co. It trades about 0.05 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.03 per unit of risk. If you would invest 912.00 in Aofu Environmental Technology on September 27, 2024 and sell it today you would earn a total of 130.00 from holding Aofu Environmental Technology or generate 14.25% 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. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Aofu Environmental |
| Do Fluoride Chemicals |
Aofu Environmental and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Do Fluoride
The main advantage of trading using opposite Aofu Environmental and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Aofu Environmental vs. Hunan TV Broadcast | Aofu Environmental vs. Ningxia Xiaoming Agriculture | Aofu Environmental vs. Anhui Transport Consulting | Aofu Environmental vs. Chengdu Xinzhu RoadBridge |
| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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