Correlation Between AOI Electronics and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and KENEDIX OFFICE 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 KENEDIX OFFICE 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 KENEDIX OFFICE INV, you can compare the effects of market volatilities on AOI Electronics and KENEDIX OFFICE 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 KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and KENEDIX OFFICE.
Diversification Opportunities for AOI Electronics and KENEDIX OFFICE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and KENEDIX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV 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 KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of AOI Electronics i.e., AOI Electronics and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between AOI Electronics and KENEDIX OFFICE
If you would invest 88,000 in KENEDIX OFFICE INV on December 11, 2024 and sell it today you would earn a total of 1,000.00 from holding KENEDIX OFFICE INV or generate 1.14% 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. KENEDIX OFFICE INV
Performance |
| Timeline |
| AOI Electronics |
| KENEDIX OFFICE INV |
AOI Electronics and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and KENEDIX OFFICE
The main advantage of trading using opposite AOI Electronics and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.| AOI Electronics vs. QBE Insurance Group | AOI Electronics vs. NAKED WINES PLC | AOI Electronics vs. PANIN INSURANCE | AOI Electronics vs. Goosehead Insurance |
| KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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