Correlation Between Canadian Utilities and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both Canadian Utilities 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 Canadian Utilities and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Utilities Limited and AOI Electronics Co, you can compare the effects of market volatilities on Canadian Utilities 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 Canadian Utilities with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Utilities and AOI Electronics.
Diversification Opportunities for Canadian Utilities and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Utilities Limited and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and Canadian Utilities 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 Canadian Utilities Limited 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 Canadian Utilities i.e., Canadian Utilities and AOI Electronics go up and down completely randomly.
Pair Corralation between Canadian Utilities and AOI Electronics
If you would invest 2,178 in Canadian Utilities Limited on August 30, 2024 and sell it today you would earn a total of 265.00 from holding Canadian Utilities Limited or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Utilities Limited vs. AOI Electronics Co
Performance |
| Timeline |
| Canadian Utilities |
| AOI Electronics |
Canadian Utilities and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Utilities and AOI Electronics
The main advantage of trading using opposite Canadian Utilities and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Utilities 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.| Canadian Utilities vs. National Grid PLC | Canadian Utilities vs. Superior Plus Corp | Canadian Utilities vs. SIVERS SEMICONDUCTORS AB | Canadian Utilities vs. Identiv |
| AOI Electronics vs. NVIDIA | AOI Electronics vs. Texas Instruments Incorporated | AOI Electronics vs. Advanced Micro Devices | AOI Electronics vs. Advanced Micro Devices |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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