Correlation Between BingEx and Ainsworth Game

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

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

Diversification Opportunities for BingEx and Ainsworth Game

0.12

Correlation Coefficient

BingEx  Ainsworth Game

Average diversification

The 3 months correlation between BingEx and Ainsworth is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding BingEx 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 BingEx 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 BingEx 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 BingEx i.e., BingEx and Ainsworth Game go up and down completely randomly.

Pair Corralation between BingEx and Ainsworth Game

Considering the 90-day investment horizon BingEx is expected to under-perform the Ainsworth Game. In addition to that, BingEx is 1.94 times more volatile than Ainsworth Game Technology. It trades about -0.12 of its total potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.01 per unit of volatility. If you would invest  75.00  in Ainsworth Game Technology on October 25, 2024 and sell it today you would lose (27.00) from holding Ainsworth Game Technology or give up 36.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	15.38%
Values	Daily Returns

BingEx  vs.  Ainsworth Game Technology

BingEx

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BingEx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company 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 BingEx and Ainsworth Game

The main advantage of trading using opposite BingEx and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BingEx 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 BingEx 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 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.