Correlation Between SBI Insurance and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both SBI Insurance 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 SBI Insurance and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Insurance Group and AOI Electronics Co, you can compare the effects of market volatilities on SBI Insurance 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 SBI Insurance with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Insurance and AOI Electronics.
Diversification Opportunities for SBI Insurance and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBI and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SBI Insurance Group and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and SBI Insurance 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 SBI Insurance Group 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 SBI Insurance i.e., SBI Insurance and AOI Electronics go up and down completely randomly.
Pair Corralation between SBI Insurance and AOI Electronics
If you would invest 550.00 in SBI Insurance Group on August 30, 2024 and sell it today you would earn a total of 45.00 from holding SBI Insurance Group or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Insurance Group vs. AOI Electronics Co
Performance |
| Timeline |
| SBI Insurance Group |
| AOI Electronics |
SBI Insurance and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Insurance and AOI Electronics
The main advantage of trading using opposite SBI Insurance and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Insurance 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.| SBI Insurance vs. Insteel Industries | SBI Insurance vs. LEGACY IRON ORE | SBI Insurance vs. SBA Communications Corp | SBI Insurance vs. Khiron Life Sciences |
| AOI Electronics vs. DIVERSIFIED ROYALTY | AOI Electronics vs. CDL INVESTMENT | AOI Electronics vs. Chuangs China Investments | AOI Electronics vs. Fast Retailing Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |