Correlation Between AOI Electronics and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on AOI Electronics and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and PKSHA TECHNOLOGY.
Diversification Opportunities for AOI Electronics and PKSHA TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and PKSHA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of AOI Electronics i.e., AOI Electronics and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between AOI Electronics and PKSHA TECHNOLOGY
If you would invest 2,120 in PKSHA TECHNOLOGY INC on September 22, 2024 and sell it today you would earn a total of 180.00 from holding PKSHA TECHNOLOGY INC or generate 8.49% 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. PKSHA TECHNOLOGY INC
Performance |
Timeline |
AOI Electronics |
PKSHA TECHNOLOGY INC |
AOI Electronics and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AOI Electronics and PKSHA TECHNOLOGY
The main advantage of trading using opposite AOI Electronics and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.AOI Electronics vs. ScanSource | AOI Electronics vs. NTG Nordic Transport | AOI Electronics vs. ULTRA CLEAN HLDGS | AOI Electronics vs. MOLSON RS BEVERAGE |
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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.
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