Correlation Between AOI Electronics and LPKF Laser
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and LPKF Laser 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 LPKF Laser 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 LPKF Laser Electronics, you can compare the effects of market volatilities on AOI Electronics and LPKF Laser 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 LPKF Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and LPKF Laser.
Diversification Opportunities for AOI Electronics and LPKF Laser
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and LPKF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and LPKF Laser Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LPKF Laser Electronics 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 LPKF Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LPKF Laser Electronics has no effect on the direction of AOI Electronics i.e., AOI Electronics and LPKF Laser go up and down completely randomly.
Pair Corralation between AOI Electronics and LPKF Laser
If you would invest 1,868 in AOI Electronics Co on September 3, 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 | 99.8% |
| Values | Daily Returns |
AOI Electronics Co vs. LPKF Laser Electronics
Performance |
| Timeline |
| AOI Electronics |
| LPKF Laser Electronics |
AOI Electronics and LPKF Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and LPKF Laser
The main advantage of trading using opposite AOI Electronics and LPKF Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, LPKF Laser 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 LPKF Laser will offset losses from the drop in LPKF Laser's long position.| AOI Electronics vs. Check Point Software | AOI Electronics vs. Unity Software | AOI Electronics vs. Guidewire Software | AOI Electronics vs. Alfa Financial Software |
| LPKF Laser vs. IDP EDUCATION LTD | LPKF Laser vs. EMBARK EDUCATION LTD | LPKF Laser vs. CAREER EDUCATION | LPKF Laser vs. Adtalem Global Education |
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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