Correlation Between Ainsworth Game and Charter Hall
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Charter Hall 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 Charter Hall 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 Charter Hall Retail, you can compare the effects of market volatilities on Ainsworth Game and Charter Hall 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 Charter Hall. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Charter Hall.
Diversification Opportunities for Ainsworth Game and Charter Hall
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ainsworth and Charter is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Charter Hall Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Hall Retail 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 Charter Hall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Hall Retail has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Charter Hall go up and down completely randomly.
Pair Corralation between Ainsworth Game and Charter Hall
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 2.66 times more return on investment than Charter Hall. However, Ainsworth Game is 2.66 times more volatile than Charter Hall Retail. It trades about 0.06 of its potential returns per unit of risk. Charter Hall Retail is currently generating about 0.06 per unit of risk. If you would invest 73.00 in Ainsworth Game Technology on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Ainsworth Game Technology or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Charter Hall Retail
Performance |
| Timeline |
| Ainsworth Game Technology |
| Charter Hall Retail |
Ainsworth Game and Charter Hall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Charter Hall
The main advantage of trading using opposite Ainsworth Game and Charter Hall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Charter Hall 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 Charter Hall will offset losses from the drop in Charter Hall's long position.| Ainsworth Game vs. G8 Education | Ainsworth Game vs. Richmond Vanadium Technology | Ainsworth Game vs. Charter Hall Education | Ainsworth Game vs. Queste Communications |
| Charter Hall vs. Leeuwin Metals | Charter Hall vs. Regis Healthcare | Charter Hall vs. DY6 Metals | Charter Hall vs. Oneview Healthcare PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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