Correlation Between EAGLE MATERIALS and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both EAGLE MATERIALS 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 EAGLE MATERIALS and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAGLE MATERIALS and AOI Electronics Co, you can compare the effects of market volatilities on EAGLE MATERIALS 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 EAGLE MATERIALS with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAGLE MATERIALS and AOI Electronics.
Diversification Opportunities for EAGLE MATERIALS and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EAGLE and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAGLE MATERIALS and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and EAGLE MATERIALS 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 EAGLE MATERIALS 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 EAGLE MATERIALS i.e., EAGLE MATERIALS and AOI Electronics go up and down completely randomly.
Pair Corralation between EAGLE MATERIALS and AOI Electronics
If you would invest 14,486 in EAGLE MATERIALS on August 29, 2024 and sell it today you would earn a total of 15,114 from holding EAGLE MATERIALS or generate 104.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EAGLE MATERIALS vs. AOI Electronics Co
Performance |
| Timeline |
| EAGLE MATERIALS |
| AOI Electronics |
EAGLE MATERIALS and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAGLE MATERIALS and AOI Electronics
The main advantage of trading using opposite EAGLE MATERIALS and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAGLE MATERIALS 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.| EAGLE MATERIALS vs. Tianjin Capital Environmental | EAGLE MATERIALS vs. SOLSTAD OFFSHORE NK | EAGLE MATERIALS vs. Lion One Metals | EAGLE MATERIALS vs. LEGACY IRON ORE |
| AOI Electronics vs. NVIDIA | AOI Electronics vs. NVIDIA | AOI Electronics vs. QUALCOMM Incorporated | AOI Electronics vs. Intel |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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