Correlation Between AOI Electronics and Apple
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on AOI Electronics and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Apple.
Diversification Opportunities for AOI Electronics and Apple
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Apple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of AOI Electronics i.e., AOI Electronics and Apple go up and down completely randomly.
Pair Corralation between AOI Electronics and Apple
If you would invest 21,910 in Apple Inc on September 26, 2024 and sell it today you would earn a total of 2,600 from holding Apple Inc or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AOI Electronics Co vs. Apple Inc
Performance |
| Timeline |
| AOI Electronics |
| Apple Inc |
AOI Electronics and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Apple
The main advantage of trading using opposite AOI Electronics and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| AOI Electronics vs. Hanison Construction Holdings | AOI Electronics vs. Penta Ocean Construction Co | AOI Electronics vs. Astral Foods Limited | AOI Electronics vs. Nufarm Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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