Correlation Between COSMOSTEEL HLDGS and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS and AOI Electronics 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 COSMOSTEEL HLDGS and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSMOSTEEL HLDGS and AOI Electronics Co, you can compare the effects of market volatilities on COSMOSTEEL HLDGS and AOI Electronics 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 COSMOSTEEL HLDGS with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and AOI Electronics.
Diversification Opportunities for COSMOSTEEL HLDGS and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COSMOSTEEL and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS are associated (or correlated) with AOI Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOI Electronics has no effect on the direction of COSMOSTEEL HLDGS i.e., COSMOSTEEL HLDGS and AOI Electronics go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and AOI Electronics
If you would invest 5.90 in COSMOSTEEL HLDGS on August 28, 2024 and sell it today you would earn a total of 0.05 from holding COSMOSTEEL HLDGS or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMOSTEEL HLDGS vs. AOI Electronics Co
Performance |
| Timeline |
| COSMOSTEEL HLDGS |
| AOI Electronics |
COSMOSTEEL HLDGS and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMOSTEEL HLDGS and AOI Electronics
The main advantage of trading using opposite COSMOSTEEL HLDGS and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS position performs unexpectedly, AOI Electronics 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 AOI Electronics will offset losses from the drop in AOI Electronics' long position.| COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Microsoft |
| AOI Electronics vs. Universal Display | AOI Electronics vs. Entravision Communications | AOI Electronics vs. Spirent Communications plc | AOI Electronics vs. Internet Thailand PCL |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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