Correlation Between AOI Electronics and Flowers Foods
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Flowers Foods 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 Flowers Foods 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 Flowers Foods, you can compare the effects of market volatilities on AOI Electronics and Flowers Foods 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 Flowers Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Flowers Foods.
Diversification Opportunities for AOI Electronics and Flowers Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Flowers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Flowers Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowers Foods 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 Flowers Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flowers Foods has no effect on the direction of AOI Electronics i.e., AOI Electronics and Flowers Foods go up and down completely randomly.
Pair Corralation between AOI Electronics and Flowers Foods
If you would invest 1,868 in AOI Electronics Co on October 23, 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 | 100.0% |
| Values | Daily Returns |
AOI Electronics Co vs. Flowers Foods
Performance |
| Timeline |
| AOI Electronics |
| Flowers Foods |
AOI Electronics and Flowers Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Flowers Foods
The main advantage of trading using opposite AOI Electronics and Flowers Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Flowers Foods 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 Flowers Foods will offset losses from the drop in Flowers Foods' long position.| AOI Electronics vs. TRAINLINE PLC LS | AOI Electronics vs. EVS Broadcast Equipment | AOI Electronics vs. CLOVER HEALTH INV | AOI Electronics vs. TEXAS ROADHOUSE |
| Flowers Foods vs. Pentair plc | Flowers Foods vs. ALTAIR RES INC | Flowers Foods vs. AOI Electronics Co | Flowers Foods vs. ARROW 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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