Correlation Between AOI Electronics and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and UNIQA Insurance 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 UNIQA Insurance 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 UNIQA Insurance Group, you can compare the effects of market volatilities on AOI Electronics and UNIQA Insurance 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 UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and UNIQA Insurance.
Diversification Opportunities for AOI Electronics and UNIQA Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AOI and UNIQA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and UNIQA Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA Insurance Group 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 UNIQA Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA Insurance Group has no effect on the direction of AOI Electronics i.e., AOI Electronics and UNIQA Insurance go up and down completely randomly.
Pair Corralation between AOI Electronics and UNIQA Insurance
If you would invest 725.00 in UNIQA Insurance Group on October 26, 2024 and sell it today you would earn a total of 88.00 from holding UNIQA Insurance Group or generate 12.14% 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. UNIQA Insurance Group
Performance |
Timeline |
AOI Electronics |
UNIQA Insurance Group |
AOI Electronics and UNIQA Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AOI Electronics and UNIQA Insurance
The main advantage of trading using opposite AOI Electronics and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, UNIQA Insurance 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 UNIQA Insurance will offset losses from the drop in UNIQA Insurance's long position.AOI Electronics vs. NVIDIA | AOI Electronics vs. Taiwan Semiconductor Manufacturing | AOI Electronics vs. Broadcom | AOI Electronics vs. QUALCOMM Incorporated |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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