Correlation Between AOI Electronics and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and MOVIE GAMES 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 MOVIE GAMES 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 MOVIE GAMES SA, you can compare the effects of market volatilities on AOI Electronics and MOVIE GAMES 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 MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and MOVIE GAMES.
Diversification Opportunities for AOI Electronics and MOVIE GAMES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and MOVIE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA 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 MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of AOI Electronics i.e., AOI Electronics and MOVIE GAMES go up and down completely randomly.
Pair Corralation between AOI Electronics and MOVIE GAMES
If you would invest 297.00 in MOVIE GAMES SA on October 24, 2024 and sell it today you would earn a total of 97.00 from holding MOVIE GAMES SA or generate 32.66% 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. MOVIE GAMES SA
Performance |
| Timeline |
| AOI Electronics |
| MOVIE GAMES SA |
AOI Electronics and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and MOVIE GAMES
The main advantage of trading using opposite AOI Electronics and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.| AOI Electronics vs. Jacquet Metal Service | AOI Electronics vs. De Grey Mining | AOI Electronics vs. ARDAGH METAL PACDL 0001 | AOI Electronics vs. Stag Industrial |
| MOVIE GAMES vs. KIMBALL ELECTRONICS | MOVIE GAMES vs. AOI Electronics Co | MOVIE GAMES vs. Benchmark Electronics | MOVIE GAMES vs. Arrow Electronics |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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