Correlation Between AOI Electronics and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and GREENX 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 GREENX 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 GREENX METALS LTD, you can compare the effects of market volatilities on AOI Electronics and GREENX 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 GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and GREENX METALS.
Diversification Opportunities for AOI Electronics and GREENX METALS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and GREENX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of AOI Electronics i.e., AOI Electronics and GREENX METALS go up and down completely randomly.
Pair Corralation between AOI Electronics and GREENX METALS
If you would invest 42.00 in GREENX METALS LTD on November 3, 2024 and sell it today you would earn a total of 6.00 from holding GREENX METALS LTD or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AOI Electronics Co vs. GREENX METALS LTD
Performance |
| Timeline |
| AOI Electronics |
| GREENX METALS LTD |
AOI Electronics and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and GREENX METALS
The main advantage of trading using opposite AOI Electronics and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, GREENX 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.| AOI Electronics vs. EIDESVIK OFFSHORE NK | AOI Electronics vs. Solstad Offshore ASA | AOI Electronics vs. Molina Healthcare | AOI Electronics vs. Sims Metal Management |
| GREENX METALS vs. CORONGLRES CDIS101 | GREENX METALS vs. MONGOLIA ENERG HD 02 | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. Intel |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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