Correlation Between AOI Electronics and Strategic Investments
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Strategic Investments 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 Strategic Investments 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 Strategic Investments AS, you can compare the effects of market volatilities on AOI Electronics and Strategic Investments 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 Strategic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Strategic Investments.
Diversification Opportunities for AOI Electronics and Strategic Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Strategic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Strategic Investments AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Investments 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 Strategic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Investments has no effect on the direction of AOI Electronics i.e., AOI Electronics and Strategic Investments go up and down completely randomly.
Pair Corralation between AOI Electronics and Strategic Investments
If you would invest 14.00 in Strategic Investments AS on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Strategic Investments AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
AOI Electronics Co vs. Strategic Investments AS
Performance |
| Timeline |
| AOI Electronics |
| Strategic Investments |
AOI Electronics and Strategic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Strategic Investments
The main advantage of trading using opposite AOI Electronics and Strategic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Strategic Investments 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 Strategic Investments will offset losses from the drop in Strategic Investments' long position.| AOI Electronics vs. Check Point Software | AOI Electronics vs. Unity Software | AOI Electronics vs. Guidewire Software | AOI Electronics vs. Alfa Financial Software |
| Strategic Investments vs. Japan Tobacco | Strategic Investments vs. MAROC TELECOM | Strategic Investments vs. REGAL HOTEL INTL | Strategic Investments vs. Host Hotels Resorts |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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