Correlation Between Ainsworth Game and Indiana Resources
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Indiana Resources 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 Indiana Resources 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 Indiana Resources, you can compare the effects of market volatilities on Ainsworth Game and Indiana Resources 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 Indiana Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Indiana Resources.
Diversification Opportunities for Ainsworth Game and Indiana Resources
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ainsworth and Indiana is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Indiana Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indiana Resources 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 Indiana Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indiana Resources has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Indiana Resources go up and down completely randomly.
Pair Corralation between Ainsworth Game and Indiana Resources
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Indiana Resources. In addition to that, Ainsworth Game is 1.08 times more volatile than Indiana Resources. It trades about -0.23 of its total potential returns per unit of risk. Indiana Resources is currently generating about 0.28 per unit of volatility. If you would invest 6.20 in Indiana Resources on November 3, 2024 and sell it today you would earn a total of 0.90 from holding Indiana Resources or generate 14.52% 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. Indiana Resources
Performance |
| Timeline |
| Ainsworth Game Technology |
| Indiana Resources |
Ainsworth Game and Indiana Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Indiana Resources
The main advantage of trading using opposite Ainsworth Game and Indiana Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Indiana Resources 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 Indiana Resources will offset losses from the drop in Indiana Resources' long position.| Ainsworth Game vs. Super Retail Group | Ainsworth Game vs. Dalaroo Metals | Ainsworth Game vs. Dug Technology | Ainsworth Game vs. Computershare |
| Indiana Resources vs. Homeco Daily Needs | Indiana Resources vs. Centaurus Metals | Indiana Resources vs. Australian Unity Office | Indiana Resources vs. Queste Communications |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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