Correlation Between Ainsworth Game and Alternative Investment
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Alternative Investment 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 Alternative Investment 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 Alternative Investment Trust, you can compare the effects of market volatilities on Ainsworth Game and Alternative Investment 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 Alternative Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Alternative Investment.
Diversification Opportunities for Ainsworth Game and Alternative Investment
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ainsworth and Alternative is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Alternative Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternative Investment 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 Alternative Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternative Investment has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Alternative Investment go up and down completely randomly.
Pair Corralation between Ainsworth Game and Alternative Investment
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 3.48 times more return on investment than Alternative Investment. However, Ainsworth Game is 3.48 times more volatile than Alternative Investment Trust. It trades about 0.08 of its potential returns per unit of risk. Alternative Investment Trust is currently generating about 0.07 per unit of risk. If you would invest 76.00 in Ainsworth Game Technology on November 18, 2024 and sell it today you would earn a total of 11.00 from holding Ainsworth Game Technology or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Alternative Investment Trust
Performance |
| Timeline |
| Ainsworth Game Technology |
| Alternative Investment |
Ainsworth Game and Alternative Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Alternative Investment
The main advantage of trading using opposite Ainsworth Game and Alternative Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Alternative Investment 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 Alternative Investment will offset losses from the drop in Alternative Investment's long position.| Ainsworth Game vs. Westpac Banking | Ainsworth Game vs. Beam Communications Holdings | Ainsworth Game vs. Charter Hall Retail | Ainsworth Game vs. Rare Foods Australia |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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