Correlation Between Auswide Bank and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Auswide Bank 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 Auswide Bank and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auswide Bank and Ainsworth Game Technology, you can compare the effects of market volatilities on Auswide Bank 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 Auswide Bank with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auswide Bank and Ainsworth Game.
Diversification Opportunities for Auswide Bank and Ainsworth Game
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Auswide and Ainsworth is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Auswide Bank 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 Auswide Bank 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 Auswide Bank 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 Auswide Bank i.e., Auswide Bank and Ainsworth Game go up and down completely randomly.
Pair Corralation between Auswide Bank and Ainsworth Game
Assuming the 90 days trading horizon Auswide Bank is expected to generate 0.55 times more return on investment than Ainsworth Game. However, Auswide Bank is 1.8 times less risky than Ainsworth Game. It trades about 0.02 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.06 per unit of risk. If you would invest 485.00 in Auswide Bank on November 8, 2024 and sell it today you would earn a total of 15.00 from holding Auswide Bank or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auswide Bank vs. Ainsworth Game Technology
Performance |
| Timeline |
| Auswide Bank |
| Ainsworth Game Technology |
Auswide Bank and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auswide Bank and Ainsworth Game
The main advantage of trading using opposite Auswide Bank and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auswide Bank 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.| Auswide Bank vs. Diversified United Investment | Auswide Bank vs. Spirit Telecom | Auswide Bank vs. Argo Investments | Auswide Bank vs. Aristocrat Leisure |
| Ainsworth Game vs. ChemX Materials | Ainsworth Game vs. Djerriwarrh Investments | Ainsworth Game vs. Beam Communications Holdings | Ainsworth Game vs. Navigator Global Investments |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |