Correlation Between Ainsworth Game and COAST ENTERTAINMENT
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and COAST ENTERTAINMENT 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 COAST ENTERTAINMENT 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 COAST ENTERTAINMENT HOLDINGS, you can compare the effects of market volatilities on Ainsworth Game and COAST ENTERTAINMENT 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 COAST ENTERTAINMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and COAST ENTERTAINMENT.
Diversification Opportunities for Ainsworth Game and COAST ENTERTAINMENT
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ainsworth and COAST is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and COAST ENTERTAINMENT HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COAST ENTERTAINMENT 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 COAST ENTERTAINMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COAST ENTERTAINMENT has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and COAST ENTERTAINMENT go up and down completely randomly.
Pair Corralation between Ainsworth Game and COAST ENTERTAINMENT
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 1.97 times more return on investment than COAST ENTERTAINMENT. However, Ainsworth Game is 1.97 times more volatile than COAST ENTERTAINMENT HOLDINGS. It trades about 0.01 of its potential returns per unit of risk. COAST ENTERTAINMENT HOLDINGS is currently generating about -0.06 per unit of risk. If you would invest 76.00 in Ainsworth Game Technology on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Ainsworth Game Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. COAST ENTERTAINMENT HOLDINGS
Performance |
| Timeline |
| Ainsworth Game Technology |
| COAST ENTERTAINMENT |
Ainsworth Game and COAST ENTERTAINMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and COAST ENTERTAINMENT
The main advantage of trading using opposite Ainsworth Game and COAST ENTERTAINMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, COAST ENTERTAINMENT 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 COAST ENTERTAINMENT will offset losses from the drop in COAST ENTERTAINMENT's long position.| Ainsworth Game vs. Summit Resources Limited | Ainsworth Game vs. Ecofibre | Ainsworth Game vs. iShares Global Healthcare | Ainsworth Game vs. Adriatic Metals Plc |
| COAST ENTERTAINMENT vs. DY6 Metals | COAST ENTERTAINMENT vs. Aristocrat Leisure | COAST ENTERTAINMENT vs. Medical Developments International | COAST ENTERTAINMENT vs. Patriot Battery 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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