Correlation Between Ainsworth Game and Global Data
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Global Data 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 Global Data 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 Global Data Centre, you can compare the effects of market volatilities on Ainsworth Game and Global Data 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 Global Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Global Data.
Diversification Opportunities for Ainsworth Game and Global Data
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ainsworth and Global is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Global Data Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Data Centre 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 Global Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Data Centre has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Global Data go up and down completely randomly.
Pair Corralation between Ainsworth Game and Global Data
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 12.66 times more return on investment than Global Data. However, Ainsworth Game is 12.66 times more volatile than Global Data Centre. It trades about 0.12 of its potential returns per unit of risk. Global Data Centre is currently generating about 0.31 per unit of risk. If you would invest 76.00 in Ainsworth Game Technology on September 19, 2024 and sell it today you would earn a total of 5.00 from holding Ainsworth Game Technology or generate 6.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ainsworth Game Technology vs. Global Data Centre
Performance |
Timeline |
Ainsworth Game Technology |
Global Data Centre |
Ainsworth Game and Global Data Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ainsworth Game and Global Data
The main advantage of trading using opposite Ainsworth Game and Global Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Global Data 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 Global Data will offset losses from the drop in Global Data's long position.Ainsworth Game vs. Energy Resources | Ainsworth Game vs. 88 Energy | Ainsworth Game vs. Amani Gold | Ainsworth Game vs. A1 Investments Resources |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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