Correlation Between Stag Industrial and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both Stag Industrial and AOI Electronics 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 Stag Industrial and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stag Industrial and AOI Electronics Co, you can compare the effects of market volatilities on Stag Industrial and AOI Electronics 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 Stag Industrial with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stag Industrial and AOI Electronics.
Diversification Opportunities for Stag Industrial and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stag and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stag Industrial and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and Stag Industrial 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 Stag Industrial are associated (or correlated) with AOI Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOI Electronics has no effect on the direction of Stag Industrial i.e., Stag Industrial and AOI Electronics go up and down completely randomly.
Pair Corralation between Stag Industrial and AOI Electronics
If you would invest 3,199 in Stag Industrial on November 3, 2024 and sell it today you would earn a total of 82.00 from holding Stag Industrial or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stag Industrial vs. AOI Electronics Co
Performance |
| Timeline |
| Stag Industrial |
| AOI Electronics |
Stag Industrial and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stag Industrial and AOI Electronics
The main advantage of trading using opposite Stag Industrial and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stag Industrial position performs unexpectedly, AOI Electronics 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 AOI Electronics will offset losses from the drop in AOI Electronics' long position.| Stag Industrial vs. SIVERS SEMICONDUCTORS AB | Stag Industrial vs. NorAm Drilling AS | Stag Industrial vs. Volkswagen AG | Stag Industrial vs. Darden Restaurants |
| AOI Electronics vs. EIDESVIK OFFSHORE NK | AOI Electronics vs. Solstad Offshore ASA | AOI Electronics vs. Molina Healthcare | AOI Electronics vs. Sims Metal Management |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |