Correlation Between AOI Electronics and Insurance Australia
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Insurance Australia 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 Insurance Australia 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 Insurance Australia Group, you can compare the effects of market volatilities on AOI Electronics and Insurance Australia 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 Insurance Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Insurance Australia.
Diversification Opportunities for AOI Electronics and Insurance Australia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Insurance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Insurance Australia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insurance Australia 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 Insurance Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insurance Australia has no effect on the direction of AOI Electronics i.e., AOI Electronics and Insurance Australia go up and down completely randomly.
Pair Corralation between AOI Electronics and Insurance Australia
If you would invest 448.00 in Insurance Australia Group on August 30, 2024 and sell it today you would earn a total of 38.00 from holding Insurance Australia Group or generate 8.48% 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. Insurance Australia Group
Performance |
| Timeline |
| AOI Electronics |
| Insurance Australia |
AOI Electronics and Insurance Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Insurance Australia
The main advantage of trading using opposite AOI Electronics and Insurance Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Insurance Australia 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 Insurance Australia will offset losses from the drop in Insurance Australia's long position.| AOI Electronics vs. DIVERSIFIED ROYALTY | AOI Electronics vs. CDL INVESTMENT | AOI Electronics vs. Chuangs China Investments | AOI Electronics vs. Fast Retailing Co |
| Insurance Australia vs. PICC Property and | Insurance Australia vs. Superior Plus Corp | Insurance Australia vs. SIVERS SEMICONDUCTORS AB | Insurance Australia vs. Talanx AG |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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