Correlation Between Royal Wins and Ainsworth Game

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

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

Diversification Opportunities for Royal Wins and Ainsworth Game

0.0

Correlation Coefficient

Royal Wins  Ainsworth Game

Pay attention - limited upside

The 3 months correlation between Royal and Ainsworth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Royal Wins 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 Royal Wins 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 Royal Wins 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 Royal Wins i.e., Royal Wins and Ainsworth Game go up and down completely randomly.

Pair Corralation between Royal Wins and Ainsworth Game

If you would invest  53.00  in Ainsworth Game Technology on December 30, 2024 and sell it today you would lose (1.00) from holding Ainsworth Game Technology or give up 1.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Royal Wins  vs.  Ainsworth Game Technology

Royal Wins

Risk-Adjusted Performance

Very Weak

Over the last 90 days Royal Wins has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Royal Wins is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 1 (%) 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.

Pair Trading with Royal Wins and Ainsworth Game

The main advantage of trading using opposite Royal Wins and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Royal Wins 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 Royal Wins 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..