Correlation Between AOI Electronics and Geely Automobile
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Geely Automobile 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 Geely Automobile 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 Geely Automobile Holdings, you can compare the effects of market volatilities on AOI Electronics and Geely Automobile 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 Geely Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Geely Automobile.
Diversification Opportunities for AOI Electronics and Geely Automobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Geely is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Geely Automobile Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geely Automobile Holdings 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 Geely Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geely Automobile Holdings has no effect on the direction of AOI Electronics i.e., AOI Electronics and Geely Automobile go up and down completely randomly.
Pair Corralation between AOI Electronics and Geely Automobile
If you would invest 167.00 in Geely Automobile Holdings on October 30, 2024 and sell it today you would earn a total of 10.00 from holding Geely Automobile Holdings or generate 5.99% 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. Geely Automobile Holdings
Performance |
| Timeline |
| AOI Electronics |
| Geely Automobile Holdings |
AOI Electronics and Geely Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Geely Automobile
The main advantage of trading using opposite AOI Electronics and Geely Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Geely Automobile 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 Geely Automobile will offset losses from the drop in Geely Automobile'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 |
| Geely Automobile vs. LANDSEA GREEN MANAGEMENT | Geely Automobile vs. AEGEAN AIRLINES | Geely Automobile vs. Corporate Travel Management | Geely Automobile vs. American Airlines Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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