Correlation Between Ainsworth Game and Hotel Property
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Hotel Property 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 Hotel Property 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 Hotel Property Investments, you can compare the effects of market volatilities on Ainsworth Game and Hotel Property 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 Hotel Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Hotel Property.
Diversification Opportunities for Ainsworth Game and Hotel Property
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ainsworth and Hotel is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Hotel Property Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Property Inves 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 Hotel Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Property Inves has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Hotel Property go up and down completely randomly.
Pair Corralation between Ainsworth Game and Hotel Property
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Hotel Property. In addition to that, Ainsworth Game is 2.39 times more volatile than Hotel Property Investments. It trades about -0.03 of its total potential returns per unit of risk. Hotel Property Investments is currently generating about 0.12 per unit of volatility. If you would invest 242.00 in Hotel Property Investments on October 21, 2024 and sell it today you would earn a total of 134.00 from holding Hotel Property Investments or generate 55.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ainsworth Game Technology vs. Hotel Property Investments
Performance |
Timeline |
Ainsworth Game Technology |
Hotel Property Inves |
Ainsworth Game and Hotel Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ainsworth Game and Hotel Property
The main advantage of trading using opposite Ainsworth Game and Hotel Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Hotel Property 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 Hotel Property will offset losses from the drop in Hotel Property's long position.Ainsworth Game vs. Southern Cross Media | Ainsworth Game vs. Skycity Entertainment Group | Ainsworth Game vs. Dexus Convenience Retail | Ainsworth Game vs. Sports Entertainment Group |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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