Correlation Between Ainsworth Game and KINDER

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

Diversification Opportunities for Ainsworth Game and KINDER

-0.14

Correlation Coefficient

Ainsworth Game  KINDER

Good diversification

The 3 months correlation between Ainsworth and KINDER is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and KINDER MORGAN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN INC 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN INC has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and KINDER go up and down completely randomly.

Pair Corralation between Ainsworth Game and KINDER

Assuming the 90 days horizon Ainsworth Game Technology is expected to generate 45.63 times more return on investment than KINDER. However, Ainsworth Game is 45.63 times more volatile than KINDER MORGAN INC. It trades about 0.03 of its potential returns per unit of risk. KINDER MORGAN INC is currently generating about 0.01 per unit of risk. If you would invest  51.00  in Ainsworth Game Technology on December 26, 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	Moves Against
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Ainsworth Game Technology  vs.  KINDER MORGAN INC

Ainsworth Game Technology

Risk-Adjusted Performance

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.

KINDER MORGAN INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days KINDER MORGAN INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, KINDER 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 KINDER

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

The idea behind Ainsworth Game Technology and KINDER MORGAN INC 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.