Correlation Between AOI Electronics and PT Bank
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and PT Bank 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 PT Bank 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 PT Bank Mandiri, you can compare the effects of market volatilities on AOI Electronics and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and PT Bank.
Diversification Opportunities for AOI Electronics and PT Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and PQ9 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and PT Bank Mandiri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Mandiri has no effect on the direction of AOI Electronics i.e., AOI Electronics and PT Bank go up and down completely randomly.
Pair Corralation between AOI Electronics and PT Bank
If you would invest 32.00 in PT Bank Mandiri on August 28, 2024 and sell it today you would earn a total of 6.00 from holding PT Bank Mandiri or generate 18.75% 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. PT Bank Mandiri
Performance |
| Timeline |
| AOI Electronics |
| PT Bank Mandiri |
AOI Electronics and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and PT Bank
The main advantage of trading using opposite AOI Electronics and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank'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 |
| PT Bank vs. Lamar Advertising | PT Bank vs. JD SPORTS FASH | PT Bank vs. PLAYTIKA HOLDING DL 01 | PT Bank vs. LG Display 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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