Correlation Between Ainsworth Game and 29Metals
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and 29Metals 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 Ainsworth Game and 29Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainsworth Game Technology and 29Metals, you can compare the effects of market volatilities on Ainsworth Game and 29Metals 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 Ainsworth Game with a short position of 29Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and 29Metals.
Diversification Opportunities for Ainsworth Game and 29Metals
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and 29Metals is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and 29Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 29Metals and Ainsworth Game 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 Ainsworth Game Technology are associated (or correlated) with 29Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 29Metals has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and 29Metals go up and down completely randomly.
Pair Corralation between Ainsworth Game and 29Metals
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 0.88 times more return on investment than 29Metals. However, Ainsworth Game Technology is 1.14 times less risky than 29Metals. It trades about -0.03 of its potential returns per unit of risk. 29Metals is currently generating about -0.18 per unit of risk. If you would invest 76.00 in Ainsworth Game Technology on November 8, 2024 and sell it today you would lose (2.00) from holding Ainsworth Game Technology or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. 29Metals
Performance |
| Timeline |
| Ainsworth Game Technology |
| 29Metals |
Ainsworth Game and 29Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and 29Metals
The main advantage of trading using opposite Ainsworth Game and 29Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, 29Metals 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 29Metals will offset losses from the drop in 29Metals' long position.| Ainsworth Game vs. ChemX Materials | Ainsworth Game vs. Djerriwarrh Investments | Ainsworth Game vs. Beam Communications Holdings | Ainsworth Game vs. Navigator Global Investments |
| 29Metals vs. Qbe Insurance Group | 29Metals vs. MetalsGrove Mining | 29Metals vs. Lendlease Group | 29Metals vs. Magellan Financial Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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