Correlation Between Ainsworth Game and Australian Strategic
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Australian Strategic 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 Strategic 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 Strategic Materials, you can compare the effects of market volatilities on Ainsworth Game and Australian Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Australian Strategic.
Diversification Opportunities for Ainsworth Game and Australian Strategic
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and Australian is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Australian Strategic Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Australian Strategic 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Australian Strategic has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Australian Strategic go up and down completely randomly.
Pair Corralation between Ainsworth Game and Australian Strategic
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Australian Strategic. In addition to that, Ainsworth Game is 1.13 times more volatile than Australian Strategic Materials. It trades about -0.23 of its total potential returns per unit of risk. Australian Strategic Materials is currently generating about -0.2 per unit of volatility. If you would invest 53.00 in Australian Strategic Materials on November 3, 2024 and sell it today you would lose (5.00) from holding Australian Strategic Materials or give up 9.43% 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. Australian Strategic Materials
Performance |
| Timeline |
| Ainsworth Game Technology |
| Australian Strategic |
Ainsworth Game and Australian Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Australian Strategic
The main advantage of trading using opposite Ainsworth Game and Australian Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Australian Strategic 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 Strategic will offset losses from the drop in Australian Strategic's long position.| Ainsworth Game vs. Super Retail Group | Ainsworth Game vs. Dalaroo Metals | Ainsworth Game vs. Dug Technology | Ainsworth Game vs. Computershare |
| Australian Strategic vs. A1 Investments Resources | Australian Strategic vs. Hotel Property Investments | Australian Strategic vs. Mirrabooka Investments | Australian Strategic vs. TPG Telecom |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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