Correlation Between Ainsworth Game and Ims Health

Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Ims Health 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 Ims Health 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 Ims Health, you can compare the effects of market volatilities on Ainsworth Game and Ims Health 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 Ims Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Ims Health.

Diversification Opportunities for Ainsworth Game and Ims Health

0.0

Correlation Coefficient

Ainsworth Game  Ims Health

Pay attention - limited upside

The 3 months correlation between Ainsworth and Ims is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Ims Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ims Health 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 Ims Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ims Health has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Ims Health go up and down completely randomly.

Pair Corralation between Ainsworth Game and Ims Health

If you would invest  54.00  in Ainsworth Game Technology on December 19, 2024 and sell it today you would earn a total of  0.00  from holding Ainsworth Game Technology or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ainsworth Game Technology  vs.  Ims Health

Ainsworth Game Technology

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ainsworth Game Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Ainsworth Game may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Ims Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ims Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Ims Health is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ainsworth Game and Ims Health

The main advantage of trading using opposite Ainsworth Game and Ims Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Ims Health 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 Ims Health will offset losses from the drop in Ims Health's long position.

The idea behind Ainsworth Game Technology and Ims Health 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.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.