Correlation Between AOI Electronics and CSX
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and CSX 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 CSX 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 CSX Corporation, you can compare the effects of market volatilities on AOI Electronics and CSX 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 CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and CSX.
Diversification Opportunities for AOI Electronics and CSX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and CSX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation 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 CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of AOI Electronics i.e., AOI Electronics and CSX go up and down completely randomly.
Pair Corralation between AOI Electronics and CSX
If you would invest 1,868 in AOI Electronics Co on November 28, 2024 and sell it today you would earn a total of 0.00 from holding AOI Electronics Co or generate 0.0% 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. CSX Corp.
Performance |
| Timeline |
| AOI Electronics |
| CSX Corporation |
AOI Electronics and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and CSX
The main advantage of trading using opposite AOI Electronics and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.| AOI Electronics vs. CENTURIA OFFICE REIT | AOI Electronics vs. FIREWEED METALS P | AOI Electronics vs. ADRIATIC METALS LS 013355 | AOI Electronics vs. Corporate Office Properties |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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