Correlation Between AOI Electronics and Minerals Technologies
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Minerals Technologies 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 Minerals Technologies 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 Minerals Technologies, you can compare the effects of market volatilities on AOI Electronics and Minerals Technologies 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 Minerals Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Minerals Technologies.
Diversification Opportunities for AOI Electronics and Minerals Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Minerals is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Minerals Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerals Technologies 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 Minerals Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerals Technologies has no effect on the direction of AOI Electronics i.e., AOI Electronics and Minerals Technologies go up and down completely randomly.
Pair Corralation between AOI Electronics and Minerals Technologies
If you would invest 5,986 in Minerals Technologies on October 16, 2024 and sell it today you would earn a total of 1,164 from holding Minerals Technologies or generate 19.45% 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. Minerals Technologies
Performance |
| Timeline |
| AOI Electronics |
| Minerals Technologies |
AOI Electronics and Minerals Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Minerals Technologies
The main advantage of trading using opposite AOI Electronics and Minerals Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Minerals Technologies 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 Minerals Technologies will offset losses from the drop in Minerals Technologies' long position.| AOI Electronics vs. Fast Retailing Co | AOI Electronics vs. THRACE PLASTICS | AOI Electronics vs. NEWELL RUBBERMAID | AOI Electronics vs. SIDETRADE EO 1 |
| Minerals Technologies vs. Renesas Electronics | Minerals Technologies vs. AOI Electronics Co | Minerals Technologies vs. KIMBALL ELECTRONICS | Minerals Technologies vs. Entravision Communications |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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