Correlation Between HK Electric and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both HK Electric 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 HK Electric and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HK Electric Investments and AOI Electronics Co, you can compare the effects of market volatilities on HK Electric 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 HK Electric with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Electric and AOI Electronics.
Diversification Opportunities for HK Electric and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKT and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Electric Investments and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and HK Electric 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 HK Electric Investments 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 HK Electric i.e., HK Electric and AOI Electronics go up and down completely randomly.
Pair Corralation between HK Electric and AOI Electronics
If you would invest 62.00 in HK Electric Investments on September 2, 2024 and sell it today you would earn a total of 0.00 from holding HK Electric Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HK Electric Investments vs. AOI Electronics Co
Performance |
| Timeline |
| HK Electric Investments |
| AOI Electronics |
HK Electric and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Electric and AOI Electronics
The main advantage of trading using opposite HK Electric and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Electric 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.| HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc |
| AOI Electronics vs. Coor Service Management | AOI Electronics vs. CEOTRONICS | AOI Electronics vs. Gamma Communications plc | AOI Electronics vs. WT OFFSHORE |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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