Correlation Between Ainsworth Game and CUE Energy
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and CUE Energy 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 CUE Energy 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 CUE Energy Resources, you can compare the effects of market volatilities on Ainsworth Game and CUE Energy 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 CUE Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and CUE Energy.
Diversification Opportunities for Ainsworth Game and CUE Energy
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and CUE is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and CUE Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUE Energy Resources 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 CUE Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUE Energy Resources has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and CUE Energy go up and down completely randomly.
Pair Corralation between Ainsworth Game and CUE Energy
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the CUE Energy. But the stock apears to be less risky and, when comparing its historical volatility, Ainsworth Game Technology is 1.44 times less risky than CUE Energy. The stock trades about 0.0 of its potential returns per unit of risk. The CUE Energy Resources is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4.88 in CUE Energy Resources on September 12, 2024 and sell it today you would earn a total of 4.92 from holding CUE Energy Resources or generate 100.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. CUE Energy Resources
Performance |
| Timeline |
| Ainsworth Game Technology |
| CUE Energy Resources |
Ainsworth Game and CUE Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and CUE Energy
The main advantage of trading using opposite Ainsworth Game and CUE Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, CUE Energy 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 CUE Energy will offset losses from the drop in CUE Energy's long position.| Ainsworth Game vs. COAST ENTERTAINMENT HOLDINGS | Ainsworth Game vs. Infomedia | Ainsworth Game vs. Seven West Media | Ainsworth Game vs. Retail Food Group |
| CUE Energy vs. Srj Technologies Group | CUE Energy vs. Ainsworth Game Technology | CUE Energy vs. Richmond Vanadium Technology | CUE Energy vs. Ras Technology Holdings |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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