Correlation Between AOI Electronics and Haier Smart
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Haier Smart 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 Haier Smart 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 Haier Smart Home, you can compare the effects of market volatilities on AOI Electronics and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Haier Smart.
Diversification Opportunities for AOI Electronics and Haier Smart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Haier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of AOI Electronics i.e., AOI Electronics and Haier Smart go up and down completely randomly.
Pair Corralation between AOI Electronics and Haier Smart
If you would invest 180.00 in Haier Smart Home on November 8, 2024 and sell it today you would earn a total of 0.00 from holding Haier Smart Home or generate 0.0% 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. Haier Smart Home
Performance |
| Timeline |
| AOI Electronics |
| Haier Smart Home |
AOI Electronics and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Haier Smart
The main advantage of trading using opposite AOI Electronics and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| AOI Electronics vs. ADRIATIC METALS LS 013355 | AOI Electronics vs. Jacquet Metal Service | AOI Electronics vs. SIERRA METALS | AOI Electronics vs. FIREWEED METALS P |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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