Correlation Between AOI Electronics and Adyen NV
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Adyen NV 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 Adyen NV 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 Adyen NV, you can compare the effects of market volatilities on AOI Electronics and Adyen NV 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 Adyen NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Adyen NV.
Diversification Opportunities for AOI Electronics and Adyen NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Adyen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Adyen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adyen NV 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 Adyen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adyen NV has no effect on the direction of AOI Electronics i.e., AOI Electronics and Adyen NV go up and down completely randomly.
Pair Corralation between AOI Electronics and Adyen NV
If you would invest 149,540 in Adyen NV on September 3, 2024 and sell it today you would lose (11,900) from holding Adyen NV or give up 7.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AOI Electronics Co vs. Adyen NV
Performance |
| Timeline |
| AOI Electronics |
| Adyen NV |
AOI Electronics and Adyen NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Adyen NV
The main advantage of trading using opposite AOI Electronics and Adyen NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Adyen NV 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 Adyen NV will offset losses from the drop in Adyen NV's long position.| AOI Electronics vs. Check Point Software | AOI Electronics vs. Unity Software | AOI Electronics vs. Guidewire Software | AOI Electronics vs. Alfa Financial Software |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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