Correlation Between Ainsworth Game and Argo Investments
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Argo Investments 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 Ainsworth Game and Argo Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainsworth Game Technology and Argo Investments, you can compare the effects of market volatilities on Ainsworth Game and Argo Investments 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 Ainsworth Game with a short position of Argo Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Argo Investments.
Diversification Opportunities for Ainsworth Game and Argo Investments
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ainsworth and Argo is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Argo Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Investments and Ainsworth Game 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 Ainsworth Game Technology are associated (or correlated) with Argo Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Investments has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Argo Investments go up and down completely randomly.
Pair Corralation between Ainsworth Game and Argo Investments
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 7.42 times more return on investment than Argo Investments. However, Ainsworth Game is 7.42 times more volatile than Argo Investments. It trades about 0.03 of its potential returns per unit of risk. Argo Investments is currently generating about -0.03 per unit of risk. If you would invest 80.00 in Ainsworth Game Technology on December 30, 2024 and sell it today you would earn a total of 3.00 from holding Ainsworth Game Technology or generate 3.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ainsworth Game Technology vs. Argo Investments
Performance |
Timeline |
Ainsworth Game Technology |
Argo Investments |
Ainsworth Game and Argo Investments Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ainsworth Game and Argo Investments
The main advantage of trading using opposite Ainsworth Game and Argo Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Argo Investments 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 Argo Investments will offset losses from the drop in Argo Investments' long position.Ainsworth Game vs. Torque Metals | Ainsworth Game vs. Argo Investments | Ainsworth Game vs. A1 Investments Resources | Ainsworth Game vs. Asian Battery Metals |
Argo Investments vs. Vitura Health Limited | Argo Investments vs. Oneview Healthcare PLC | Argo Investments vs. Readytech Holdings | Argo Investments vs. Regis Healthcare |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |