Correlation Between AOI Electronics and ENGIE ADR/1
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and ENGIE ADR/1 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 ENGIE ADR/1 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 ENGIE ADR1 EO, you can compare the effects of market volatilities on AOI Electronics and ENGIE ADR/1 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 ENGIE ADR/1. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and ENGIE ADR/1.
Diversification Opportunities for AOI Electronics and ENGIE ADR/1
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and ENGIE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and ENGIE ADR1 EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENGIE ADR1 EO 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 ENGIE ADR/1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENGIE ADR1 EO has no effect on the direction of AOI Electronics i.e., AOI Electronics and ENGIE ADR/1 go up and down completely randomly.
Pair Corralation between AOI Electronics and ENGIE ADR/1
If you would invest 1,868 in AOI Electronics Co on September 1, 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 | 95.65% |
| Values | Daily Returns |
AOI Electronics Co vs. ENGIE ADR1 EO
Performance |
| Timeline |
| AOI Electronics |
| ENGIE ADR1 EO |
AOI Electronics and ENGIE ADR/1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and ENGIE ADR/1
The main advantage of trading using opposite AOI Electronics and ENGIE ADR/1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, ENGIE ADR/1 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 ENGIE ADR/1 will offset losses from the drop in ENGIE ADR/1's long position.| AOI Electronics vs. AWILCO DRILLING PLC | AOI Electronics vs. Constellation Software | AOI Electronics vs. Taiwan Semiconductor Manufacturing | AOI Electronics vs. PRECISION DRILLING P |
| ENGIE ADR/1 vs. BYD ELECTRONIC | ENGIE ADR/1 vs. AOI Electronics Co | ENGIE ADR/1 vs. INTERSHOP Communications Aktiengesellschaft | ENGIE ADR/1 vs. Taiwan Semiconductor Manufacturing |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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