Correlation Between AOI Electronics and ADRIATIC METALS
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and ADRIATIC METALS 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 ADRIATIC METALS 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 ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on AOI Electronics and ADRIATIC METALS 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 ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and ADRIATIC METALS.
Diversification Opportunities for AOI Electronics and ADRIATIC METALS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and ADRIATIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS 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 ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of AOI Electronics i.e., AOI Electronics and ADRIATIC METALS go up and down completely randomly.
Pair Corralation between AOI Electronics and ADRIATIC METALS
If you would invest 242.00 in ADRIATIC METALS LS 013355 on November 18, 2024 and sell it today you would earn a total of 26.00 from holding ADRIATIC METALS LS 013355 or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AOI Electronics Co vs. ADRIATIC METALS LS 013355
Performance |
| Timeline |
| AOI Electronics |
| ADRIATIC METALS LS |
AOI Electronics and ADRIATIC METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and ADRIATIC METALS
The main advantage of trading using opposite AOI Electronics and ADRIATIC METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, ADRIATIC METALS 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 ADRIATIC METALS will offset losses from the drop in ADRIATIC METALS's long position.| AOI Electronics vs. Hastings Technology Metals | AOI Electronics vs. H2O Retailing | AOI Electronics vs. Wayside Technology Group | AOI Electronics vs. National Retail Properties |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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