Correlation Between Celestica and AU Optronics
Can any of the company-specific risk be diversified away by investing in both Celestica and AU Optronics 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 Celestica and AU Optronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and AU Optronics Corp, you can compare the effects of market volatilities on Celestica and AU Optronics 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 Celestica with a short position of AU Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and AU Optronics.
Diversification Opportunities for Celestica and AU Optronics
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celestica and AUOTY is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and AU Optronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AU Optronics Corp and Celestica 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 Celestica are associated (or correlated) with AU Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AU Optronics Corp has no effect on the direction of Celestica i.e., Celestica and AU Optronics go up and down completely randomly.
Pair Corralation between Celestica and AU Optronics
If you would invest 9,876 in Celestica on November 5, 2024 and sell it today you would earn a total of 2,471 from holding Celestica or generate 25.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Celestica vs. AU Optronics Corp
Performance |
| Timeline |
| Celestica |
| AU Optronics Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Celestica and AU Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and AU Optronics
The main advantage of trading using opposite Celestica and AU Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, AU Optronics 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 AU Optronics will offset losses from the drop in AU Optronics' long position.| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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