Correlation Between Lifeway Foods and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both Lifeway Foods 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 Lifeway Foods and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifeway Foods and AOI Electronics Co, you can compare the effects of market volatilities on Lifeway Foods 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 Lifeway Foods with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifeway Foods and AOI Electronics.
Diversification Opportunities for Lifeway Foods and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lifeway and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lifeway Foods and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and Lifeway Foods 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 Lifeway Foods 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 Lifeway Foods i.e., Lifeway Foods and AOI Electronics go up and down completely randomly.
Pair Corralation between Lifeway Foods and AOI Electronics
If you would invest 1,868 in AOI Electronics Co on September 1, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifeway Foods vs. AOI Electronics Co
Performance |
| Timeline |
| Lifeway Foods |
| AOI Electronics |
Lifeway Foods and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifeway Foods and AOI Electronics
The main advantage of trading using opposite Lifeway Foods and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifeway Foods 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.| Lifeway Foods vs. ScanSource | Lifeway Foods vs. Waste Management | Lifeway Foods vs. Brockhaus Capital Management | Lifeway Foods vs. Consolidated Communications Holdings |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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