Correlation Between Interlink Electronics and AU Optronics
Can any of the company-specific risk be diversified away by investing in both Interlink Electronics and AU Optronics 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 Interlink Electronics and AU Optronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interlink Electronics and AU Optronics Corp, you can compare the effects of market volatilities on Interlink Electronics and AU Optronics 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 Interlink Electronics with a short position of AU Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlink Electronics and AU Optronics.
Diversification Opportunities for Interlink Electronics and AU Optronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Interlink and AUOTY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Interlink Electronics and AU Optronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AU Optronics Corp and Interlink Electronics 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 Interlink Electronics are associated (or correlated) with AU Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AU Optronics Corp has no effect on the direction of Interlink Electronics i.e., Interlink Electronics and AU Optronics go up and down completely randomly.
Pair Corralation between Interlink Electronics and AU Optronics
If you would invest 515.00 in Interlink Electronics on October 26, 2024 and sell it today you would earn a total of 370.00 from holding Interlink Electronics or generate 71.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
Interlink Electronics vs. AU Optronics Corp
Performance |
| Timeline |
| Interlink Electronics |
| AU Optronics Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Interlink Electronics and AU Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlink Electronics and AU Optronics
The main advantage of trading using opposite Interlink Electronics and AU Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlink Electronics position performs unexpectedly, AU Optronics 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 AU Optronics will offset losses from the drop in AU Optronics' long position.| Interlink Electronics vs. Methode Electronics | Interlink Electronics vs. Bel Fuse A | Interlink Electronics vs. CTS Corporation | Interlink Electronics vs. MicroCloud Hologram |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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