Correlation Between AOI Electronics and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Austevoll Seafood 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 Austevoll Seafood 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 Austevoll Seafood ASA, you can compare the effects of market volatilities on AOI Electronics and Austevoll Seafood 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 Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Austevoll Seafood.
Diversification Opportunities for AOI Electronics and Austevoll Seafood
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and Austevoll is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA 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 Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of AOI Electronics i.e., AOI Electronics and Austevoll Seafood go up and down completely randomly.
Pair Corralation between AOI Electronics and Austevoll Seafood
If you would invest 807.00 in Austevoll Seafood ASA on September 1, 2024 and sell it today you would earn a total of 48.00 from holding Austevoll Seafood ASA or generate 5.95% 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. Austevoll Seafood ASA
Performance |
| Timeline |
| AOI Electronics |
| Austevoll Seafood ASA |
AOI Electronics and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Austevoll Seafood
The main advantage of trading using opposite AOI Electronics and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.| AOI Electronics vs. AWILCO DRILLING PLC | AOI Electronics vs. Constellation Software | AOI Electronics vs. Taiwan Semiconductor Manufacturing | AOI Electronics vs. PRECISION DRILLING P |
| Austevoll Seafood vs. GRIFFIN MINING LTD | Austevoll Seafood vs. PennantPark Investment | Austevoll Seafood vs. Jacquet Metal Service | Austevoll Seafood vs. Apollo Investment Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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