Correlation Between Intel and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and AOI Electronics Co, you can compare the effects of market volatilities on Intel 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 Intel with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and AOI Electronics.
Diversification Opportunities for Intel and AOI Electronics
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Intel and AOI is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Intel and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and Intel 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 Intel 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 Intel i.e., Intel and AOI Electronics go up and down completely randomly.
Pair Corralation between Intel and AOI Electronics
Assuming the 90 days trading horizon Intel is expected to generate 47.79 times more return on investment than AOI Electronics. However, Intel is 47.79 times more volatile than AOI Electronics Co. It trades about 0.16 of its potential returns per unit of risk. AOI Electronics Co is currently generating about 0.13 per unit of risk. If you would invest 2,036 in Intel on August 20, 2025 and sell it today you would earn a total of 1,021 from holding Intel or generate 50.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. AOI Electronics Co
Performance |
| Timeline |
| Intel |
| AOI Electronics |
Intel and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and AOI Electronics
The main advantage of trading using opposite Intel and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. Gaming and Leisure | Intel vs. Host Hotels Resorts | Intel vs. HYATT HOTELS A | Intel vs. Aristocrat Leisure Limited |
| AOI Electronics vs. Universal Health Realty | AOI Electronics vs. Garofalo Health Care | AOI Electronics vs. GREENX METALS LTD | AOI Electronics vs. CARDINAL HEALTH |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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