Correlation Between Ainsworth Game and Lendlease
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Lendlease 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 Lendlease 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 Lendlease Group, you can compare the effects of market volatilities on Ainsworth Game and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Lendlease.
Diversification Opportunities for Ainsworth Game and Lendlease
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and Lendlease is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Lendlease go up and down completely randomly.
Pair Corralation between Ainsworth Game and Lendlease
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 2.18 times more return on investment than Lendlease. However, Ainsworth Game is 2.18 times more volatile than Lendlease Group. It trades about -0.09 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.28 per unit of risk. If you would invest 81.00 in Ainsworth Game Technology on October 12, 2024 and sell it today you would lose (6.00) from holding Ainsworth Game Technology or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Lendlease Group
Performance |
| Timeline |
| Ainsworth Game Technology |
| Lendlease Group |
Ainsworth Game and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Lendlease
The main advantage of trading using opposite Ainsworth Game and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| Ainsworth Game vs. Sayona Mining | Ainsworth Game vs. Queste Communications | Ainsworth Game vs. MetalsGrove Mining | Ainsworth Game vs. Richmond Vanadium Technology |
| Lendlease vs. Ainsworth Game Technology | Lendlease vs. Aurelia Metals | Lendlease vs. Macquarie Technology Group | Lendlease 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 CEOs Directory module to screen CEOs from public companies around the world.
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