Correlation Between MAROC TELECOM and AOI Electronics

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

Diversification Opportunities for MAROC TELECOM and AOI Electronics

-0.5
  Correlation Coefficient

Very good diversification

The 3 months correlation between MAROC and AOI is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding MAROC TELECOM and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and MAROC TELECOM 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 MAROC TELECOM 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 MAROC TELECOM i.e., MAROC TELECOM and AOI Electronics go up and down completely randomly.

Pair Corralation between MAROC TELECOM and AOI Electronics

Assuming the 90 days trading horizon MAROC TELECOM is expected to generate 44.62 times more return on investment than AOI Electronics. However, MAROC TELECOM is 44.62 times more volatile than AOI Electronics Co. It trades about 0.01 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  1,087  in MAROC TELECOM on August 16, 2025 and sell it today you would lose (37.00) from holding MAROC TELECOM or give up 3.4% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

MAROC TELECOM  vs.  AOI Electronics Co

 Performance 
       Timeline  
MAROC TELECOM 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days MAROC TELECOM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, MAROC TELECOM is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
AOI Electronics 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in AOI Electronics Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. 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.

MAROC TELECOM and AOI Electronics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MAROC TELECOM and AOI Electronics

The main advantage of trading using opposite MAROC TELECOM and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAROC TELECOM 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 MAROC TELECOM 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.
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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