Correlation Between Aofu Environmental and Ye Chiu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aofu Environmental Technology and Ye Chiu Metal, you can compare the effects of market volatilities on Aofu Environmental and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Ye Chiu.
Diversification Opportunities for Aofu Environmental and Ye Chiu
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aofu and 601388 is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Aofu Environmental i.e., Aofu Environmental and Ye Chiu go up and down completely randomly.
Pair Corralation between Aofu Environmental and Ye Chiu
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to generate 1.25 times more return on investment than Ye Chiu. However, Aofu Environmental is 1.25 times more volatile than Ye Chiu Metal. It trades about 0.05 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about 0.04 per unit of risk. If you would invest 1,020 in Aofu Environmental Technology on September 1, 2024 and sell it today you would earn a total of 160.00 from holding Aofu Environmental Technology or generate 15.69% 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. Ye Chiu Metal
Performance |
| Timeline |
| Aofu Environmental |
| Ye Chiu Metal |
Aofu Environmental and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Ye Chiu
The main advantage of trading using opposite Aofu Environmental and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.The idea behind Aofu Environmental Technology and Ye Chiu Metal pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |