Correlation Between Ainsworth Game and Hawsons Iron
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Hawsons Iron 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 Hawsons Iron 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 Hawsons Iron, you can compare the effects of market volatilities on Ainsworth Game and Hawsons Iron 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 Hawsons Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Hawsons Iron.
Diversification Opportunities for Ainsworth Game and Hawsons Iron
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ainsworth and Hawsons is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Hawsons Iron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawsons Iron 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 Hawsons Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawsons Iron has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Hawsons Iron go up and down completely randomly.
Pair Corralation between Ainsworth Game and Hawsons Iron
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 0.55 times more return on investment than Hawsons Iron. However, Ainsworth Game Technology is 1.81 times less risky than Hawsons Iron. It trades about 0.11 of its potential returns per unit of risk. Hawsons Iron is currently generating about -0.07 per unit of risk. If you would invest 71.00 in Ainsworth Game Technology on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Ainsworth Game Technology or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Hawsons Iron
Performance |
| Timeline |
| Ainsworth Game Technology |
| Hawsons Iron |
Ainsworth Game and Hawsons Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Hawsons Iron
The main advantage of trading using opposite Ainsworth Game and Hawsons Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Hawsons Iron 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 Hawsons Iron will offset losses from the drop in Hawsons Iron's long position.| Ainsworth Game vs. iShares Global Healthcare | Ainsworth Game vs. Australian Dairy Farms | Ainsworth Game vs. Adriatic Metals Plc | Ainsworth Game vs. Australian Agricultural |
| Hawsons Iron vs. Northern Star Resources | Hawsons Iron vs. Evolution Mining | Hawsons Iron vs. Bluescope Steel | Hawsons Iron vs. Sandfire Resources NL |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |