Correlation Between AOI Electronics and MUTUIONLINE

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Can any of the company-specific risk be diversified away by investing in both AOI Electronics and MUTUIONLINE 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 MUTUIONLINE 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 MUTUIONLINE, you can compare the effects of market volatilities on AOI Electronics and MUTUIONLINE 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 MUTUIONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and MUTUIONLINE.

Diversification Opportunities for AOI Electronics and MUTUIONLINE

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AOI and MUTUIONLINE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and MUTUIONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUTUIONLINE 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 MUTUIONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUTUIONLINE has no effect on the direction of AOI Electronics i.e., AOI Electronics and MUTUIONLINE go up and down completely randomly.

Pair Corralation between AOI Electronics and MUTUIONLINE

If you would invest  2,829  in MUTUIONLINE on October 5, 2024 and sell it today you would earn a total of  816.00  from holding MUTUIONLINE or generate 28.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

AOI Electronics Co  vs.  MUTUIONLINE

 Performance 
       Timeline  
AOI Electronics 

Risk-Adjusted Performance

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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.
MUTUIONLINE 

Risk-Adjusted Performance

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OK
Over the last 90 days MUTUIONLINE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather unsteady essential indicators, MUTUIONLINE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

AOI Electronics and MUTUIONLINE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AOI Electronics and MUTUIONLINE

The main advantage of trading using opposite AOI Electronics and MUTUIONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, MUTUIONLINE 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 MUTUIONLINE will offset losses from the drop in MUTUIONLINE's long position.
The idea behind AOI Electronics Co and MUTUIONLINE 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.
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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 Transaction History module to view history of all your transactions and understand their impact on performance.

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