Correlation Between Ainsworth Game and Atomos
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Atomos 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 Atomos 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 Atomos, you can compare the effects of market volatilities on Ainsworth Game and Atomos 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 Atomos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Atomos.
Diversification Opportunities for Ainsworth Game and Atomos
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ainsworth and Atomos is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Atomos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomos 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 Atomos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomos has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Atomos go up and down completely randomly.
Pair Corralation between Ainsworth Game and Atomos
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 0.33 times more return on investment than Atomos. However, Ainsworth Game Technology is 3.03 times less risky than Atomos. It trades about 0.06 of its potential returns per unit of risk. Atomos is currently generating about -0.38 per unit of risk. If you would invest 74.00 in Ainsworth Game Technology on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Ainsworth Game Technology or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Atomos
Performance |
| Timeline |
| Ainsworth Game Technology |
| Atomos |
Ainsworth Game and Atomos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Atomos
The main advantage of trading using opposite Ainsworth Game and Atomos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Atomos 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 Atomos will offset losses from the drop in Atomos' long position.| Ainsworth Game vs. COAST ENTERTAINMENT HOLDINGS | Ainsworth Game vs. Infomedia | Ainsworth Game vs. Seven West Media | Ainsworth Game vs. Retail Food Group |
| Atomos vs. Aneka Tambang Tbk | Atomos vs. BHP Group Limited | Atomos vs. Commonwealth Bank | Atomos vs. Commonwealth Bank of |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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