Correlation Between AOI Electronics and Regions Financial
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Regions Financial 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 Regions Financial 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 Regions Financial, you can compare the effects of market volatilities on AOI Electronics and Regions Financial 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 Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Regions Financial.
Diversification Opportunities for AOI Electronics and Regions Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Regions is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of AOI Electronics i.e., AOI Electronics and Regions Financial go up and down completely randomly.
Pair Corralation between AOI Electronics and Regions Financial
If you would invest 1,899 in Regions Financial on September 2, 2024 and sell it today you would earn a total of 701.00 from holding Regions Financial or generate 36.91% 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. Regions Financial
Performance |
| Timeline |
| AOI Electronics |
| Regions Financial |
AOI Electronics and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Regions Financial
The main advantage of trading using opposite AOI Electronics and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Regions Financial 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 Regions Financial will offset losses from the drop in Regions Financial's long position.| AOI Electronics vs. Coor Service Management | AOI Electronics vs. CEOTRONICS | AOI Electronics vs. Gamma Communications plc | AOI Electronics vs. WT OFFSHORE |
| Regions Financial vs. DELTA AIR LINES | Regions Financial vs. SAFETY MEDICAL PROD | Regions Financial vs. Pentair plc | Regions Financial vs. Alaska Air Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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