Correlation Between Ainsworth Game and Event Hospitality
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Event Hospitality 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 Event Hospitality 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 Event Hospitality and, you can compare the effects of market volatilities on Ainsworth Game and Event Hospitality 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 Event Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Event Hospitality.
Diversification Opportunities for Ainsworth Game and Event Hospitality
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ainsworth and Event is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Event Hospitality and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Event Hospitality 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 Event Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Event Hospitality has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Event Hospitality go up and down completely randomly.
Pair Corralation between Ainsworth Game and Event Hospitality
Assuming the 90 days trading horizon Ainsworth Game is expected to generate 1.74 times less return on investment than Event Hospitality. In addition to that, Ainsworth Game is 2.0 times more volatile than Event Hospitality and. It trades about 0.01 of its total potential returns per unit of risk. Event Hospitality and is currently generating about 0.03 per unit of volatility. If you would invest 1,176 in Event Hospitality and on November 30, 2024 and sell it today you would earn a total of 242.00 from holding Event Hospitality and or generate 20.58% 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. Event Hospitality and
Performance |
Timeline |
Ainsworth Game Technology |
Event Hospitality |
Ainsworth Game and Event Hospitality Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ainsworth Game and Event Hospitality
The main advantage of trading using opposite Ainsworth Game and Event Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Event Hospitality 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 Event Hospitality will offset losses from the drop in Event Hospitality's long position.Ainsworth Game vs. IRIS Metals | ||
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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