Correlation Between Ainsworth Game and Home Consortium
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Home Consortium 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 Home Consortium 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 Home Consortium, you can compare the effects of market volatilities on Ainsworth Game and Home Consortium 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 Home Consortium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Home Consortium.
Diversification Opportunities for Ainsworth Game and Home Consortium
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and Home is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Home Consortium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Consortium 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 Home Consortium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Consortium has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Home Consortium go up and down completely randomly.
Pair Corralation between Ainsworth Game and Home Consortium
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 1.54 times more return on investment than Home Consortium. However, Ainsworth Game is 1.54 times more volatile than Home Consortium. It trades about 0.03 of its potential returns per unit of risk. Home Consortium is currently generating about -0.23 per unit of risk. If you would invest 80.00 in Ainsworth Game Technology on December 29, 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 Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ainsworth Game Technology vs. Home Consortium
Performance |
Timeline |
Ainsworth Game Technology |
Home Consortium |
Ainsworth Game and Home Consortium Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ainsworth Game and Home Consortium
The main advantage of trading using opposite Ainsworth Game and Home Consortium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Home Consortium 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 Home Consortium will offset losses from the drop in Home Consortium's long position.Ainsworth Game vs. Treasury Wine Estates | Ainsworth Game vs. Data3 | Ainsworth Game vs. Rights Applications | Ainsworth Game vs. Sports Entertainment Group |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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