Correlation Between AOI Electronics and ANGLO ASIAN
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and ANGLO ASIAN 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 ANGLO ASIAN 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 ANGLO ASIAN MINING, you can compare the effects of market volatilities on AOI Electronics and ANGLO ASIAN 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 ANGLO ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and ANGLO ASIAN.
Diversification Opportunities for AOI Electronics and ANGLO ASIAN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and ANGLO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and ANGLO ASIAN MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLO ASIAN MINING 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 ANGLO ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLO ASIAN MINING has no effect on the direction of AOI Electronics i.e., AOI Electronics and ANGLO ASIAN go up and down completely randomly.
Pair Corralation between AOI Electronics and ANGLO ASIAN
If you would invest 126.00 in ANGLO ASIAN MINING on October 29, 2024 and sell it today you would earn a total of 3.00 from holding ANGLO ASIAN MINING or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
AOI Electronics Co vs. ANGLO ASIAN MINING
Performance |
| Timeline |
| AOI Electronics |
| ANGLO ASIAN MINING |
AOI Electronics and ANGLO ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and ANGLO ASIAN
The main advantage of trading using opposite AOI Electronics and ANGLO ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, ANGLO ASIAN 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 ANGLO ASIAN will offset losses from the drop in ANGLO ASIAN's long position.| AOI Electronics vs. TERADATA | AOI Electronics vs. MICRONIC MYDATA | AOI Electronics vs. Merit Medical Systems | AOI Electronics vs. NTT DATA |
| ANGLO ASIAN vs. CAL MAINE FOODS | ANGLO ASIAN vs. United Insurance Holdings | ANGLO ASIAN vs. United Natural Foods | ANGLO ASIAN vs. SENECA FOODS A |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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