Correlation Between AOI Electronics and Focus Home
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Focus Home 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 AOI Electronics and Focus Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AOI Electronics Co and Focus Home Interactive, you can compare the effects of market volatilities on AOI Electronics and Focus Home 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 AOI Electronics with a short position of Focus Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Focus Home.
Diversification Opportunities for AOI Electronics and Focus Home
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Focus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Focus Home Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Home Interactive and AOI 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 AOI Electronics Co are associated (or correlated) with Focus Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Home Interactive has no effect on the direction of AOI Electronics i.e., AOI Electronics and Focus Home go up and down completely randomly.
Pair Corralation between AOI Electronics and Focus Home
If you would invest 2,110 in Focus Home Interactive on October 30, 2024 and sell it today you would lose (10.00) from holding Focus Home Interactive or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AOI Electronics Co vs. Focus Home Interactive
Performance |
| Timeline |
| AOI Electronics |
| Focus Home Interactive |
AOI Electronics and Focus Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Focus Home
The main advantage of trading using opposite AOI Electronics and Focus Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Focus Home 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 Focus Home will offset losses from the drop in Focus Home's long position.| AOI Electronics vs. COFCO Joycome Foods | AOI Electronics vs. United Natural Foods | AOI Electronics vs. PATTIES FOODS | AOI Electronics vs. INDOFOOD AGRI RES |
| Focus Home vs. Hua Hong Semiconductor | Focus Home vs. SK TELECOM TDADR | Focus Home vs. Comba Telecom Systems | Focus Home vs. Charter Communications |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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