Correlation Between SmarTone Telecommunicatio and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both SmarTone Telecommunicatio 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 SmarTone Telecommunicatio and AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmarTone Telecommunications Holdings and AOI Electronics Co, you can compare the effects of market volatilities on SmarTone Telecommunicatio 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 SmarTone Telecommunicatio with a short position of AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmarTone Telecommunicatio and AOI Electronics.
Diversification Opportunities for SmarTone Telecommunicatio and AOI Electronics
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SmarTone and AOI is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding SmarTone Telecommunications Ho and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics and SmarTone Telecommunicatio 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 SmarTone Telecommunications Holdings 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 SmarTone Telecommunicatio i.e., SmarTone Telecommunicatio and AOI Electronics go up and down completely randomly.
Pair Corralation between SmarTone Telecommunicatio and AOI Electronics
Assuming the 90 days horizon SmarTone Telecommunications Holdings is expected to generate 11.16 times more return on investment than AOI Electronics. However, SmarTone Telecommunicatio is 11.16 times more volatile than AOI Electronics Co. It trades about 0.09 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 49.00 in SmarTone Telecommunications Holdings on August 14, 2025 and sell it today you would earn a total of 3.00 from holding SmarTone Telecommunications Holdings or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SmarTone Telecommunications Ho vs. AOI Electronics Co
Performance |
| Timeline |
| SmarTone Telecommunicatio |
| AOI Electronics |
SmarTone Telecommunicatio and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SmarTone Telecommunicatio and AOI Electronics
The main advantage of trading using opposite SmarTone Telecommunicatio and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmarTone Telecommunicatio 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.| SmarTone Telecommunicatio vs. China Mobile Limited | SmarTone Telecommunicatio vs. SIVERS SEMICONDUCTORS AB | SmarTone Telecommunicatio vs. NorAm Drilling AS | SmarTone Telecommunicatio vs. BANK HANDLOWY |
| AOI Electronics vs. NVIDIA | AOI Electronics vs. Taiwan Semiconductor Manufacturing | AOI Electronics vs. Intel | AOI Electronics vs. BANK HANDLOWY |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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