Correlation Between AOI Electronics and Lion One
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on AOI Electronics and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Lion One.
Diversification Opportunities for AOI Electronics and Lion One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Lion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of AOI Electronics i.e., AOI Electronics and Lion One go up and down completely randomly.
Pair Corralation between AOI Electronics and Lion One
If you would invest 1,868 in AOI Electronics Co on August 28, 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. Lion One Metals
Performance |
| Timeline |
| AOI Electronics |
| Lion One Metals |
AOI Electronics and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Lion One
The main advantage of trading using opposite AOI Electronics and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| AOI Electronics vs. Universal Display | AOI Electronics vs. Entravision Communications | AOI Electronics vs. Spirent Communications plc | AOI Electronics vs. Internet Thailand PCL |
| Lion One vs. Franco Nevada | Lion One vs. Agnico Eagle Mines | Lion One vs. Superior Plus Corp | Lion One vs. NMI 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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