Correlation Between AOI Electronics and STMICROELECTRONICS
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and STMICROELECTRONICS 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 STMICROELECTRONICS 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 STMICROELECTRONICS, you can compare the effects of market volatilities on AOI Electronics and STMICROELECTRONICS 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 STMICROELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and STMICROELECTRONICS.
Diversification Opportunities for AOI Electronics and STMICROELECTRONICS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and STMICROELECTRONICS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and STMICROELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STMICROELECTRONICS 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 STMICROELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STMICROELECTRONICS has no effect on the direction of AOI Electronics i.e., AOI Electronics and STMICROELECTRONICS go up and down completely randomly.
Pair Corralation between AOI Electronics and STMICROELECTRONICS
If you would invest 2,380 in STMICROELECTRONICS on November 27, 2024 and sell it today you would earn a total of 284.00 from holding STMICROELECTRONICS or generate 11.93% 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. STMICROELECTRONICS
Performance |
| Timeline |
| AOI Electronics |
| STMICROELECTRONICS |
AOI Electronics and STMICROELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and STMICROELECTRONICS
The main advantage of trading using opposite AOI Electronics and STMICROELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, STMICROELECTRONICS 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 STMICROELECTRONICS will offset losses from the drop in STMICROELECTRONICS's long position.| AOI Electronics vs. FIREWEED METALS P | AOI Electronics vs. Goodyear Tire Rubber | AOI Electronics vs. Coeur Mining | AOI Electronics vs. GOODYEAR T RUBBER |
| STMICROELECTRONICS vs. DETALION GAMES SA | STMICROELECTRONICS vs. Platinum Investment Management | STMICROELECTRONICS vs. AGNC Investment Corp | STMICROELECTRONICS vs. CONTAGIOUS GAMING INC |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |