Correlation Between AOI Electronics and ArcelorMittal
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and ArcelorMittal 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 ArcelorMittal 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 ArcelorMittal, you can compare the effects of market volatilities on AOI Electronics and ArcelorMittal 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 ArcelorMittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and ArcelorMittal.
Diversification Opportunities for AOI Electronics and ArcelorMittal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and ArcelorMittal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and ArcelorMittal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal 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 ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal has no effect on the direction of AOI Electronics i.e., AOI Electronics and ArcelorMittal go up and down completely randomly.
Pair Corralation between AOI Electronics and ArcelorMittal
If you would invest 2,478 in ArcelorMittal on August 24, 2024 and sell it today you would lose (78.00) from holding ArcelorMittal or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AOI Electronics Co vs. ArcelorMittal
Performance |
| Timeline |
| AOI Electronics |
| ArcelorMittal |
AOI Electronics and ArcelorMittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and ArcelorMittal
The main advantage of trading using opposite AOI Electronics and ArcelorMittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, ArcelorMittal 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 ArcelorMittal will offset losses from the drop in ArcelorMittal's long position.| AOI Electronics vs. NVIDIA | AOI Electronics vs. NVIDIA | AOI Electronics vs. Taiwan Semiconductor Manufacturing | AOI Electronics vs. QUALCOMM Incorporated |
| ArcelorMittal vs. ELECTRONIC ARTS | ArcelorMittal vs. AOI Electronics Co | ArcelorMittal vs. PKSHA TECHNOLOGY INC | ArcelorMittal vs. Methode Electronics |
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 CEOs Directory module to screen CEOs from public companies around the world.
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