Correlation Between AOI Electronics and Dno ASA
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Dno ASA 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 Dno ASA 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 Dno ASA, you can compare the effects of market volatilities on AOI Electronics and Dno ASA 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 Dno ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Dno ASA.
Diversification Opportunities for AOI Electronics and Dno ASA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Dno is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Dno ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dno ASA 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 Dno ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dno ASA has no effect on the direction of AOI Electronics i.e., AOI Electronics and Dno ASA go up and down completely randomly.
Pair Corralation between AOI Electronics and Dno ASA
If you would invest 1,319 in Dno ASA on October 30, 2024 and sell it today you would earn a total of 10.00 from holding Dno ASA or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
AOI Electronics Co vs. Dno ASA
Performance |
| Timeline |
| AOI Electronics |
| Dno ASA |
AOI Electronics and Dno ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Dno ASA
The main advantage of trading using opposite AOI Electronics and Dno ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Dno ASA 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 Dno ASA will offset losses from the drop in Dno ASA's long position.| AOI Electronics vs. COFCO Joycome Foods | AOI Electronics vs. United Natural Foods | AOI Electronics vs. PATTIES FOODS | AOI Electronics vs. INDOFOOD AGRI RES |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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