Correlation Between AOI Electronics and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both AOI Electronics and Gladstone Investment 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 Gladstone Investment 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 Gladstone Investment, you can compare the effects of market volatilities on AOI Electronics and Gladstone Investment 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 Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOI Electronics and Gladstone Investment.
Diversification Opportunities for AOI Electronics and Gladstone Investment
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between AOI and Gladstone is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding AOI Electronics Co and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment 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 Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of AOI Electronics i.e., AOI Electronics and Gladstone Investment go up and down completely randomly.
Pair Corralation between AOI Electronics and Gladstone Investment
Assuming the 90 days trading horizon AOI Electronics Co is expected to generate 0.09 times more return on investment than Gladstone Investment. However, AOI Electronics Co is 10.73 times less risky than Gladstone Investment. It trades about 0.13 of its potential returns per unit of risk. Gladstone Investment is currently generating about 0.0 per unit of risk. If you would invest 1,854 in AOI Electronics Co on September 6, 2025 and sell it today you would earn a total of 14.00 from holding AOI Electronics Co or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AOI Electronics Co vs. Gladstone Investment
Performance |
| Timeline |
| AOI Electronics |
| Gladstone Investment |
AOI Electronics and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOI Electronics and Gladstone Investment
The main advantage of trading using opposite AOI Electronics and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOI Electronics position performs unexpectedly, Gladstone Investment 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 Gladstone Investment will offset losses from the drop in Gladstone Investment's long position.| AOI Electronics vs. CHIBA BANK | AOI Electronics vs. Harmony Gold Mining | AOI Electronics vs. Zijin Mining Group | AOI Electronics vs. REVO INSURANCE SPA |
| Gladstone Investment vs. ULTRA CLEAN HLDGS | Gladstone Investment vs. DeVry Education Group | Gladstone Investment vs. KINGBOARD CHEMICAL | Gladstone Investment vs. SHELF DRILLING LTD |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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