Correlation Between Aofu Environmental and Southchip Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aofu Environmental Technology and Southchip Semiconductor Technology, you can compare the effects of market volatilities on Aofu Environmental and Southchip Semiconductor 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 Southchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Southchip Semiconductor.
Diversification Opportunities for Aofu Environmental and Southchip Semiconductor
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aofu and Southchip is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and Southchip Semiconductor Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southchip Semiconductor 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 Southchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southchip Semiconductor has no effect on the direction of Aofu Environmental i.e., Aofu Environmental and Southchip Semiconductor go up and down completely randomly.
Pair Corralation between Aofu Environmental and Southchip Semiconductor
Assuming the 90 days trading horizon Aofu Environmental is expected to generate 1.27 times less return on investment than Southchip Semiconductor. But when comparing it to its historical volatility, Aofu Environmental Technology is 1.15 times less risky than Southchip Semiconductor. It trades about 0.04 of its potential returns per unit of risk. Southchip Semiconductor Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,244 in Southchip Semiconductor Technology on August 28, 2024 and sell it today you would earn a total of 364.00 from holding Southchip Semiconductor Technology or generate 11.22% 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. Southchip Semiconductor Techno
Performance |
| Timeline |
| Aofu Environmental |
| Southchip Semiconductor |
Aofu Environmental and Southchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Southchip Semiconductor
The main advantage of trading using opposite Aofu Environmental and Southchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental position performs unexpectedly, Southchip Semiconductor 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 Southchip Semiconductor will offset losses from the drop in Southchip Semiconductor's long position.| Aofu Environmental vs. Zijin Mining Group | Aofu Environmental vs. Baoshan Iron Steel | Aofu Environmental vs. Shandong Gold Mining | Aofu Environmental vs. Rongsheng Petrochemical Co |
| Southchip Semiconductor vs. Lutian Machinery Co | Southchip Semiconductor vs. China Longyuan Power | Southchip Semiconductor vs. Changshu Tongrun Auto | Southchip Semiconductor vs. PetroChina Co Ltd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |