Correlation Between BrightGene Bio and Aurora Optoelectronics
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By analyzing existing cross correlation between BrightGene Bio Medical and Aurora Optoelectronics Co, you can compare the effects of market volatilities on BrightGene Bio and Aurora Optoelectronics 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 BrightGene Bio with a short position of Aurora Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BrightGene Bio and Aurora Optoelectronics.
Diversification Opportunities for BrightGene Bio and Aurora Optoelectronics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BrightGene and Aurora is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding BrightGene Bio Medical and Aurora Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Optoelectronics and BrightGene Bio 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 BrightGene Bio Medical are associated (or correlated) with Aurora Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Optoelectronics has no effect on the direction of BrightGene Bio i.e., BrightGene Bio and Aurora Optoelectronics go up and down completely randomly.
Pair Corralation between BrightGene Bio and Aurora Optoelectronics
Assuming the 90 days trading horizon BrightGene Bio Medical is expected to generate 0.5 times more return on investment than Aurora Optoelectronics. However, BrightGene Bio Medical is 1.98 times less risky than Aurora Optoelectronics. It trades about -0.28 of its potential returns per unit of risk. Aurora Optoelectronics Co is currently generating about -0.34 per unit of risk. If you would invest 3,360 in BrightGene Bio Medical on October 17, 2024 and sell it today you would lose (405.00) from holding BrightGene Bio Medical or give up 12.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BrightGene Bio Medical vs. Aurora Optoelectronics Co
Performance |
| Timeline |
| BrightGene Bio Medical |
| Aurora Optoelectronics |
BrightGene Bio and Aurora Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BrightGene Bio and Aurora Optoelectronics
The main advantage of trading using opposite BrightGene Bio and Aurora Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrightGene Bio position performs unexpectedly, Aurora Optoelectronics 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 Aurora Optoelectronics will offset losses from the drop in Aurora Optoelectronics' long position.| BrightGene Bio vs. Aurora Optoelectronics Co | BrightGene Bio vs. Leyard Optoelectronic | BrightGene Bio vs. Xiandai Investment Co | BrightGene Bio vs. Shanghai Material Trading |
| Aurora Optoelectronics vs. Aluminum Corp of | Aurora Optoelectronics vs. Guangdong Jingyi Metal | Aurora Optoelectronics vs. Shanghai Yanpu Metal | Aurora Optoelectronics vs. Tibet Huayu 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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