Correlation Between AOI Electronics and Lifeway Foods
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Lifeway 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 Lifeway 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 Lifeway Foods, you can compare the effects of market volatilities on AOI Electronics and Lifeway 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 Lifeway Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Lifeway Foods.
Diversification Opportunities for AOI Electronics and Lifeway Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Lifeway is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Lifeway Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifeway 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 Lifeway Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifeway Foods has no effect on the direction of AOI Electronics i.e., AOI Electronics and Lifeway Foods go up and down completely randomly.
Pair Corralation between AOI Electronics and Lifeway Foods
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 | 100.0% |
| Values | Daily Returns |
AOI Electronics Co vs. Lifeway Foods
Performance |
| Timeline |
| AOI Electronics |
| Lifeway Foods |
AOI Electronics and Lifeway Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Lifeway Foods
The main advantage of trading using opposite AOI Electronics and Lifeway Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Lifeway 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 Lifeway Foods will offset losses from the drop in Lifeway Foods' 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 |
| Lifeway Foods vs. ScanSource | Lifeway Foods vs. Waste Management | Lifeway Foods vs. Brockhaus Capital Management | Lifeway Foods vs. Consolidated Communications Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |