Correlation Between AU Optronics and AT S
Can any of the company-specific risk be diversified away by investing in both AU Optronics and AT S at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AU Optronics and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AU Optronics Corp and AT S Austria, you can compare the effects of market volatilities on AU Optronics and AT S 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 AU Optronics with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of AU Optronics and AT S.
Diversification Opportunities for AU Optronics and AT S
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUOTY and ASAAF is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AU Optronics Corp and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and AU Optronics 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 AU Optronics Corp are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of AU Optronics i.e., AU Optronics and AT S go up and down completely randomly.
Pair Corralation between AU Optronics and AT S
If you would invest 590.00 in AU Optronics Corp on November 4, 2024 and sell it today you would earn a total of 0.00 from holding AU Optronics Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.2% |
| Values | Daily Returns |
AU Optronics Corp vs. AT S Austria
Performance |
| Timeline |
| AU Optronics Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AT S Austria |
AU Optronics and AT S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AU Optronics and AT S
The main advantage of trading using opposite AU Optronics and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AU Optronics position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.| AU Optronics vs. alpha En | AU Optronics vs. Alps Electric Co | AU Optronics vs. Bitmine Immersion Technologies | AU Optronics vs. American Aires |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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