Correlation Between AOI Electronics and Safety Insurance
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Safety Insurance 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 Safety Insurance 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 Safety Insurance Group, you can compare the effects of market volatilities on AOI Electronics and Safety Insurance 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 Safety Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Safety Insurance.
Diversification Opportunities for AOI Electronics and Safety Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Safety is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Safety Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safety Insurance 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 Safety Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safety Insurance has no effect on the direction of AOI Electronics i.e., AOI Electronics and Safety Insurance go up and down completely randomly.
Pair Corralation between AOI Electronics and Safety Insurance
If you would invest 1,868 in AOI Electronics Co on November 3, 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. Safety Insurance Group
Performance |
| Timeline |
| AOI Electronics |
| Safety Insurance |
AOI Electronics and Safety Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Safety Insurance
The main advantage of trading using opposite AOI Electronics and Safety Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Safety Insurance 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 Safety Insurance will offset losses from the drop in Safety Insurance's long position.| AOI Electronics vs. EIDESVIK OFFSHORE NK | AOI Electronics vs. Solstad Offshore ASA | AOI Electronics vs. Molina Healthcare | AOI Electronics vs. Sims Metal Management |
| Safety Insurance vs. ALERION CLEANPOWER | Safety Insurance vs. Indutrade AB | Safety Insurance vs. Clean Energy Fuels | Safety Insurance vs. Titan Machinery |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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