Correlation Between AOI Electronics and Graphic Packaging
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Graphic Packaging 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 Graphic Packaging 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 Graphic Packaging Holding, you can compare the effects of market volatilities on AOI Electronics and Graphic Packaging 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 Graphic Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Graphic Packaging.
Diversification Opportunities for AOI Electronics and Graphic Packaging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Graphic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Graphic Packaging Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging Holding 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 Graphic Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging Holding has no effect on the direction of AOI Electronics i.e., AOI Electronics and Graphic Packaging go up and down completely randomly.
Pair Corralation between AOI Electronics and Graphic Packaging
If you would invest 2,029 in Graphic Packaging Holding on September 3, 2024 and sell it today you would earn a total of 776.00 from holding Graphic Packaging Holding or generate 38.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AOI Electronics Co vs. Graphic Packaging Holding
Performance |
| Timeline |
| AOI Electronics |
| Graphic Packaging Holding |
AOI Electronics and Graphic Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Graphic Packaging
The main advantage of trading using opposite AOI Electronics and Graphic Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Graphic Packaging 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 Graphic Packaging will offset losses from the drop in Graphic Packaging'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 |
| Graphic Packaging vs. ELECTRONIC ARTS | Graphic Packaging vs. Nucletron Electronic Aktiengesellschaft | Graphic Packaging vs. UET United Electronic | Graphic Packaging vs. AOI Electronics Co |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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