Correlation Between Ainsworth Game and Clime Investment
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Clime 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 Clime 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 Clime Investment Management, you can compare the effects of market volatilities on Ainsworth Game and Clime 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 Clime Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Clime Investment.
Diversification Opportunities for Ainsworth Game and Clime Investment
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ainsworth and Clime is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Clime Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clime Investment Man 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 Clime Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clime Investment Man has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Clime Investment go up and down completely randomly.
Pair Corralation between Ainsworth Game and Clime Investment
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 1.39 times more return on investment than Clime Investment. However, Ainsworth Game is 1.39 times more volatile than Clime Investment Management. It trades about 0.0 of its potential returns per unit of risk. Clime Investment Management is currently generating about -0.01 per unit of risk. If you would invest 101.00 in Ainsworth Game Technology on November 2, 2024 and sell it today you would lose (28.00) from holding Ainsworth Game Technology or give up 27.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Clime Investment Management
Performance |
| Timeline |
| Ainsworth Game Technology |
| Clime Investment Man |
Ainsworth Game and Clime Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Clime Investment
The main advantage of trading using opposite Ainsworth Game and Clime Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Clime 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 Clime Investment will offset losses from the drop in Clime Investment's long position.| Ainsworth Game vs. Super Retail Group | Ainsworth Game vs. Dalaroo Metals | Ainsworth Game vs. Dug Technology | Ainsworth Game vs. Computershare |
| Clime Investment vs. Sky Metals | Clime Investment vs. MFF Capital Investments | Clime Investment vs. Steamships Trading | Clime Investment vs. Carlton Investments |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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