Correlation Between AEON STORES and CHINA OIL
Can any of the company-specific risk be diversified away by investing in both AEON STORES and CHINA OIL 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 AEON STORES and CHINA OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and CHINA OIL AND, you can compare the effects of market volatilities on AEON STORES and CHINA OIL 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 AEON STORES with a short position of CHINA OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and CHINA OIL.
Diversification Opportunities for AEON STORES and CHINA OIL
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEON and CHINA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES and CHINA OIL AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA OIL AND and AEON STORES 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 AEON STORES are associated (or correlated) with CHINA OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA OIL AND has no effect on the direction of AEON STORES i.e., AEON STORES and CHINA OIL go up and down completely randomly.
Pair Corralation between AEON STORES and CHINA OIL
If you would invest 2.30 in CHINA OIL AND on September 13, 2024 and sell it today you would earn a total of 0.00 from holding CHINA OIL AND or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON STORES vs. CHINA OIL AND
Performance |
| Timeline |
| AEON STORES |
| CHINA OIL AND |
AEON STORES and CHINA OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and CHINA OIL
The main advantage of trading using opposite AEON STORES and CHINA OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES position performs unexpectedly, CHINA OIL 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 CHINA OIL will offset losses from the drop in CHINA OIL's long position.| AEON STORES vs. Apple Inc | AEON STORES vs. Apple Inc | AEON STORES vs. Apple Inc | AEON STORES vs. Apple Inc |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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