Correlation Between GBS Software and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both GBS Software 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 GBS Software and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBS Software AG and AOI Electronics Co, you can compare the effects of market volatilities on GBS Software 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 GBS Software with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBS Software and AOI Electronics.
Diversification Opportunities for GBS Software and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GBS and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GBS Software AG and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and GBS Software 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 GBS Software AG 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 GBS Software i.e., GBS Software and AOI Electronics go up and down completely randomly.
Pair Corralation between GBS Software and AOI Electronics
If you would invest 256.00 in GBS Software AG on October 13, 2024 and sell it today you would earn a total of 40.00 from holding GBS Software AG or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GBS Software AG vs. AOI Electronics Co
Performance |
| Timeline |
| GBS Software AG |
| AOI Electronics |
GBS Software and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GBS Software and AOI Electronics
The main advantage of trading using opposite GBS Software and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBS Software 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.| GBS Software vs. Taiwan Semiconductor Manufacturing | GBS Software vs. MAGNUM MINING EXP | GBS Software vs. MCEWEN MINING INC | GBS Software vs. GREENX METALS LTD |
| AOI Electronics vs. Marie Brizard Wine | AOI Electronics vs. NAKED WINES PLC | AOI Electronics vs. UPDATE SOFTWARE | AOI Electronics vs. GBS Software AG |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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