Correlation Between Ainsworth Game and Actinogen Medical
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Actinogen Medical 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 Actinogen Medical 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 Actinogen Medical, you can compare the effects of market volatilities on Ainsworth Game and Actinogen Medical 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 Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Actinogen Medical.
Diversification Opportunities for Ainsworth Game and Actinogen Medical
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ainsworth and Actinogen is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical 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 Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Actinogen Medical go up and down completely randomly.
Pair Corralation between Ainsworth Game and Actinogen Medical
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Actinogen Medical. In addition to that, Ainsworth Game is 1.02 times more volatile than Actinogen Medical. It trades about -0.14 of its total potential returns per unit of risk. Actinogen Medical is currently generating about 0.02 per unit of volatility. If you would invest 2.60 in Actinogen Medical on October 29, 2024 and sell it today you would earn a total of 0.00 from holding Actinogen Medical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Actinogen Medical
Performance |
| Timeline |
| Ainsworth Game Technology |
| Actinogen Medical |
Ainsworth Game and Actinogen Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Actinogen Medical
The main advantage of trading using opposite Ainsworth Game and Actinogen Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Actinogen Medical 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 Actinogen Medical will offset losses from the drop in Actinogen Medical's long position.| Ainsworth Game vs. MFF Capital Investments | Ainsworth Game vs. Lykos Metals | Ainsworth Game vs. FireFly Metals | Ainsworth Game vs. Insurance Australia Group |
| Actinogen Medical vs. Meeka Metals Limited | Actinogen Medical vs. EVE Health Group | Actinogen Medical vs. Epsilon Healthcare | Actinogen Medical vs. Stelar Metals |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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