Correlation Between AOI Electronics and Performance Food
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Performance Food 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 Performance Food 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 Performance Food Group, you can compare the effects of market volatilities on AOI Electronics and Performance Food 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 Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Performance Food.
Diversification Opportunities for AOI Electronics and Performance Food
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Performance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food 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 Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of AOI Electronics i.e., AOI Electronics and Performance Food go up and down completely randomly.
Pair Corralation between AOI Electronics and Performance Food
If you would invest 1,868 in AOI Electronics Co on September 27, 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. Performance Food Group
Performance |
| Timeline |
| AOI Electronics |
| Performance Food |
AOI Electronics and Performance Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Performance Food
The main advantage of trading using opposite AOI Electronics and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.| AOI Electronics vs. China Resources Beer | AOI Electronics vs. Magnachip Semiconductor | AOI Electronics vs. Suntory Beverage Food | AOI Electronics vs. Playtech plc |
| Performance Food vs. DeVry Education Group | Performance Food vs. ELECTRONIC ARTS | Performance Food vs. STRAYER EDUCATION | Performance Food vs. AOI Electronics Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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