Correlation Between AOI Electronics and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Gladstone Investment 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 Gladstone Investment 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 Gladstone Investment, you can compare the effects of market volatilities on AOI Electronics and Gladstone Investment 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 Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Gladstone Investment.
Diversification Opportunities for AOI Electronics and Gladstone Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Gladstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment 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 Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of AOI Electronics i.e., AOI Electronics and Gladstone Investment go up and down completely randomly.
Pair Corralation between AOI Electronics and Gladstone Investment
If you would invest 1,054 in Gladstone Investment on November 28, 2024 and sell it today you would earn a total of 238.00 from holding Gladstone Investment or generate 22.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AOI Electronics Co vs. Gladstone Investment
Performance |
| Timeline |
| AOI Electronics |
| Gladstone Investment |
AOI Electronics and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Gladstone Investment
The main advantage of trading using opposite AOI Electronics and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Gladstone Investment 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 Gladstone Investment will offset losses from the drop in Gladstone Investment's long position.| AOI Electronics vs. CENTURIA OFFICE REIT | AOI Electronics vs. FIREWEED METALS P | AOI Electronics vs. ADRIATIC METALS LS 013355 | AOI Electronics vs. Corporate Office Properties |
| Gladstone Investment vs. GRUPO CARSO A1 | Gladstone Investment vs. Geely Automobile Holdings | Gladstone Investment vs. PRECISION DRILLING P | Gladstone Investment vs. Major Drilling Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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