Correlation Between Ainsworth Game and Australian Agricultural
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Australian Agricultural 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 Australian Agricultural 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 Australian Agricultural, you can compare the effects of market volatilities on Ainsworth Game and Australian Agricultural 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 Australian Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Australian Agricultural.
Diversification Opportunities for Ainsworth Game and Australian Agricultural
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ainsworth and Australian is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Australian Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Australian Agricultural 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 Australian Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Australian Agricultural has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Australian Agricultural go up and down completely randomly.
Pair Corralation between Ainsworth Game and Australian Agricultural
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Australian Agricultural. In addition to that, Ainsworth Game is 1.86 times more volatile than Australian Agricultural. It trades about -0.01 of its total potential returns per unit of risk. Australian Agricultural is currently generating about 0.0 per unit of volatility. If you would invest 150.00 in Australian Agricultural on November 8, 2024 and sell it today you would lose (9.00) from holding Australian Agricultural or give up 6.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Australian Agricultural
Performance |
| Timeline |
| Ainsworth Game Technology |
| Australian Agricultural |
Ainsworth Game and Australian Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Australian Agricultural
The main advantage of trading using opposite Ainsworth Game and Australian Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Australian Agricultural 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 Australian Agricultural will offset losses from the drop in Australian Agricultural's long position.| Ainsworth Game vs. ChemX Materials | Ainsworth Game vs. Djerriwarrh Investments | Ainsworth Game vs. Beam Communications Holdings | Ainsworth Game vs. Navigator Global Investments |
| Australian Agricultural vs. Arc Funds | Australian Agricultural vs. Carlton Investments | Australian Agricultural vs. Mount Gibson Iron | Australian Agricultural vs. Hudson Investment 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |