Correlation Between Ainsworth Game and Kingsrose Mining
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Kingsrose Mining 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 Kingsrose Mining 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 Kingsrose Mining, you can compare the effects of market volatilities on Ainsworth Game and Kingsrose Mining 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 Kingsrose Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Kingsrose Mining.
Diversification Opportunities for Ainsworth Game and Kingsrose Mining
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and Kingsrose is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Kingsrose Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsrose Mining 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 Kingsrose Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsrose Mining has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Kingsrose Mining go up and down completely randomly.
Pair Corralation between Ainsworth Game and Kingsrose Mining
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Kingsrose Mining. But the stock apears to be less risky and, when comparing its historical volatility, Ainsworth Game Technology is 1.37 times less risky than Kingsrose Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Kingsrose Mining is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 5.90 in Kingsrose Mining on August 27, 2024 and sell it today you would lose (2.60) from holding Kingsrose Mining or give up 44.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Kingsrose Mining
Performance |
| Timeline |
| Ainsworth Game Technology |
| Kingsrose Mining |
Ainsworth Game and Kingsrose Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Kingsrose Mining
The main advantage of trading using opposite Ainsworth Game and Kingsrose Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Kingsrose Mining 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 Kingsrose Mining will offset losses from the drop in Kingsrose Mining's long position.| Ainsworth Game vs. Kingsrose Mining | Ainsworth Game vs. Ora Banda Mining | Ainsworth Game vs. Aussie Broadband | Ainsworth Game vs. COAST ENTERTAINMENT HOLDINGS |
| Kingsrose Mining vs. Ainsworth Game Technology | Kingsrose Mining vs. Perseus Mining | Kingsrose Mining vs. Sky Metals | Kingsrose Mining vs. Stelar Metals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |