Correlation Between GALENA MINING and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both GALENA MINING 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 GALENA MINING and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GALENA MINING LTD and AOI Electronics Co, you can compare the effects of market volatilities on GALENA MINING 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 GALENA MINING with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and AOI Electronics.
Diversification Opportunities for GALENA MINING and AOI Electronics
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between GALENA and AOI is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and GALENA MINING 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 GALENA MINING LTD 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 GALENA MINING i.e., GALENA MINING and AOI Electronics go up and down completely randomly.
Pair Corralation between GALENA MINING and AOI Electronics
If you would invest 1,868 in AOI Electronics Co on August 28, 2024 and sell it today you would earn a total of 0.00 from holding AOI Electronics Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
GALENA MINING LTD vs. AOI Electronics Co
Performance |
| Timeline |
| GALENA MINING LTD |
| AOI Electronics |
GALENA MINING and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and AOI Electronics
The main advantage of trading using opposite GALENA MINING and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING 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.| GALENA MINING vs. Fidelity National Information | GALENA MINING vs. Cass Information Systems | GALENA MINING vs. Magnachip Semiconductor | GALENA MINING vs. NXP Semiconductors NV |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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