Correlation Between Insurance Australia and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both Insurance Australia 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 Insurance Australia and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insurance Australia Group and AOI Electronics Co, you can compare the effects of market volatilities on Insurance Australia 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 Insurance Australia with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insurance Australia and AOI Electronics.
Diversification Opportunities for Insurance Australia and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Insurance and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Insurance Australia Group and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and Insurance Australia 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 Insurance Australia Group 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 Insurance Australia i.e., Insurance Australia and AOI Electronics go up and down completely randomly.
Pair Corralation between Insurance Australia and AOI Electronics
If you would invest 448.00 in Insurance Australia Group on August 30, 2024 and sell it today you would earn a total of 38.00 from holding Insurance Australia Group or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insurance Australia Group vs. AOI Electronics Co
Performance |
| Timeline |
| Insurance Australia |
| AOI Electronics |
Insurance Australia and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insurance Australia and AOI Electronics
The main advantage of trading using opposite Insurance Australia and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insurance Australia 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.| Insurance Australia vs. PICC Property and | Insurance Australia vs. Superior Plus Corp | Insurance Australia vs. SIVERS SEMICONDUCTORS AB | Insurance Australia vs. Talanx AG |
| AOI Electronics vs. DIVERSIFIED ROYALTY | AOI Electronics vs. CDL INVESTMENT | AOI Electronics vs. Chuangs China Investments | AOI Electronics vs. Fast Retailing Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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