Correlation Between AOI Electronics and EAGLE MATERIALS
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and EAGLE MATERIALS 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 EAGLE MATERIALS 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 EAGLE MATERIALS, you can compare the effects of market volatilities on AOI Electronics and EAGLE MATERIALS 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 EAGLE MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and EAGLE MATERIALS.
Diversification Opportunities for AOI Electronics and EAGLE MATERIALS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and EAGLE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and EAGLE MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS 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 EAGLE MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS has no effect on the direction of AOI Electronics i.e., AOI Electronics and EAGLE MATERIALS go up and down completely randomly.
Pair Corralation between AOI Electronics and EAGLE MATERIALS
If you would invest 14,333 in EAGLE MATERIALS on August 25, 2024 and sell it today you would earn a total of 15,467 from holding EAGLE MATERIALS or generate 107.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
AOI Electronics Co vs. EAGLE MATERIALS
Performance |
| Timeline |
| AOI Electronics |
| EAGLE MATERIALS |
AOI Electronics and EAGLE MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and EAGLE MATERIALS
The main advantage of trading using opposite AOI Electronics and EAGLE MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, EAGLE MATERIALS 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 EAGLE MATERIALS will offset losses from the drop in EAGLE MATERIALS's long position.| AOI Electronics vs. NVIDIA | AOI Electronics vs. NVIDIA | AOI Electronics vs. QUALCOMM Incorporated | AOI Electronics vs. Advanced Micro Devices |
| EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Apple Inc |
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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