Correlation Between AOI Electronics and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and BANK MANDIRI 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 BANK MANDIRI 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 BANK MANDIRI, you can compare the effects of market volatilities on AOI Electronics and BANK MANDIRI 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 BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and BANK MANDIRI.
Diversification Opportunities for AOI Electronics and BANK MANDIRI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and BANK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI 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 BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of AOI Electronics i.e., AOI Electronics and BANK MANDIRI go up and down completely randomly.
Pair Corralation between AOI Electronics and BANK MANDIRI
If you would invest 29.00 in BANK MANDIRI on September 24, 2024 and sell it today you would earn a total of 3.00 from holding BANK MANDIRI or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AOI Electronics Co vs. BANK MANDIRI
Performance |
| Timeline |
| AOI Electronics |
| BANK MANDIRI |
AOI Electronics and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and BANK MANDIRI
The main advantage of trading using opposite AOI Electronics and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, BANK MANDIRI 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 BANK MANDIRI will offset losses from the drop in BANK MANDIRI's long position.| AOI Electronics vs. NVIDIA | AOI Electronics vs. Taiwan Semiconductor Manufacturing | AOI Electronics vs. Broadcom | AOI Electronics vs. Texas Instruments Incorporated |
| BANK MANDIRI vs. ALGOMA STEEL GROUP | BANK MANDIRI vs. AOI Electronics Co | BANK MANDIRI vs. ELECTRONIC ARTS | BANK MANDIRI vs. CosmoSteel Holdings Limited |
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.
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