Correlation Between Ainsworth Game and Group 6
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Group 6 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 Group 6 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 Group 6 Metals, you can compare the effects of market volatilities on Ainsworth Game and Group 6 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 Group 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Group 6.
Diversification Opportunities for Ainsworth Game and Group 6
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ainsworth and Group is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Group 6 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group 6 Metals 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 Group 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group 6 Metals has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Group 6 go up and down completely randomly.
Pair Corralation between Ainsworth Game and Group 6
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 0.58 times more return on investment than Group 6. However, Ainsworth Game Technology is 1.72 times less risky than Group 6. It trades about -0.01 of its potential returns per unit of risk. Group 6 Metals is currently generating about -0.05 per unit of risk. If you would invest 105.00 in Ainsworth Game Technology on November 1, 2024 and sell it today you would lose (30.00) from holding Ainsworth Game Technology or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Group 6 Metals
Performance |
| Timeline |
| Ainsworth Game Technology |
| Group 6 Metals |
Ainsworth Game and Group 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Group 6
The main advantage of trading using opposite Ainsworth Game and Group 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Group 6 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 Group 6 will offset losses from the drop in Group 6's long position.| Ainsworth Game vs. Change Financial Limited | Ainsworth Game vs. Wt Financial Group | Ainsworth Game vs. Auswide Bank | Ainsworth Game vs. Retail Food Group |
| Group 6 vs. Ainsworth Game Technology | Group 6 vs. Treasury Wine Estates | Group 6 vs. Global Health | Group 6 vs. Fisher Paykel Healthcare |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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