Correlation Between ACDC Metals and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both ACDC Metals 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 ACDC Metals and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACDC Metals and Ainsworth Game Technology, you can compare the effects of market volatilities on ACDC Metals 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 ACDC Metals with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACDC Metals and Ainsworth Game.
Diversification Opportunities for ACDC Metals and Ainsworth Game
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ACDC and Ainsworth is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ACDC Metals 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 ACDC Metals 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 ACDC Metals 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 ACDC Metals i.e., ACDC Metals and Ainsworth Game go up and down completely randomly.
Pair Corralation between ACDC Metals and Ainsworth Game
Assuming the 90 days trading horizon ACDC Metals is expected to generate 1.48 times more return on investment than Ainsworth Game. However, ACDC Metals is 1.48 times more volatile than Ainsworth Game Technology. It trades about 0.04 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.01 per unit of risk. If you would invest 5.30 in ACDC Metals on October 12, 2024 and sell it today you would earn a total of 0.20 from holding ACDC Metals or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACDC Metals vs. Ainsworth Game Technology
Performance |
| Timeline |
| ACDC Metals |
| Ainsworth Game Technology |
ACDC Metals and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACDC Metals and Ainsworth Game
The main advantage of trading using opposite ACDC Metals and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACDC Metals 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.| ACDC Metals vs. COG Financial Services | ACDC Metals vs. Perpetual Credit Income | ACDC Metals vs. Liberty Financial Group | ACDC Metals vs. Dexus Convenience Retail |
| Ainsworth Game vs. Sayona Mining | Ainsworth Game vs. Queste Communications | Ainsworth Game vs. MetalsGrove Mining | Ainsworth Game vs. Richmond Vanadium Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |