Correlation Between Deutsche Wohnen and AOI Electronics

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Deutsche Wohnen 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 Deutsche Wohnen and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Wohnen SE and AOI Electronics Co, you can compare the effects of market volatilities on Deutsche Wohnen 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 Deutsche Wohnen with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Wohnen and AOI Electronics.

Diversification Opportunities for Deutsche Wohnen and AOI Electronics

DeutscheAOIDiversified AwayDeutscheAOIDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Deutsche and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Wohnen SE and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and Deutsche Wohnen 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 Deutsche Wohnen SE 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 Deutsche Wohnen i.e., Deutsche Wohnen and AOI Electronics go up and down completely randomly.

Pair Corralation between Deutsche Wohnen and AOI Electronics

If you would invest  1,868  in AOI Electronics Co on October 22, 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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Deutsche Wohnen SE  vs.  AOI Electronics Co

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-8-6-4-202
JavaScript chart by amCharts 3.21.15DWNI OIA
       Timeline  
Deutsche Wohnen SE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Deutsche Wohnen SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Deutsche Wohnen is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2222.52323.52424.525
AOI Electronics 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AOI Electronics Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AOI Electronics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1919.5

Deutsche Wohnen and AOI Electronics Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.8-2.1-1.4-0.690.00.661.332.02.68 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15DWNI OIA
       Returns  

Pair Trading with Deutsche Wohnen and AOI Electronics

The main advantage of trading using opposite Deutsche Wohnen and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Wohnen 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.
The idea behind Deutsche Wohnen SE and AOI Electronics Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon


 

Discover investing ideas

Utilize additional investing modules