Correlation Between Ehouse Global and Ainsworth Game

Can any of the company-specific risk be diversified away by investing in both Ehouse Global and Ainsworth Game 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 Ehouse Global and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ehouse Global and Ainsworth Game Technology, you can compare the effects of market volatilities on Ehouse Global and Ainsworth Game 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 Ehouse Global with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehouse Global and Ainsworth Game.

Diversification Opportunities for Ehouse Global and Ainsworth Game

0.0

Correlation Coefficient

Ehouse Global  Ainsworth Game

Pay attention - limited upside

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

Pair Corralation between Ehouse Global and Ainsworth Game

If you would invest  50.00  in Ainsworth Game Technology on October 25, 2024 and sell it today you would earn a total of  1.00  from holding Ainsworth Game Technology or generate 2.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Ehouse Global  vs.  Ainsworth Game Technology

Ehouse Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ehouse Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ehouse Global is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Ainsworth Game Technology

Risk-Adjusted Performance

2 of 100

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 February 2025.

Pair Trading with Ehouse Global and Ainsworth Game

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

The idea behind Ehouse Global and Ainsworth Game Technology 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.