Correlation Between Ainsworth Game and MA Financial
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and MA Financial 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 MA Financial 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 MA Financial Group, you can compare the effects of market volatilities on Ainsworth Game and MA Financial 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 MA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and MA Financial.
Diversification Opportunities for Ainsworth Game and MA Financial
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ainsworth and MAF is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and MA Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MA Financial 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 MA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MA Financial Group has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and MA Financial go up and down completely randomly.
Pair Corralation between Ainsworth Game and MA Financial
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 1.58 times more return on investment than MA Financial. However, Ainsworth Game is 1.58 times more volatile than MA Financial Group. It trades about 0.0 of its potential returns per unit of risk. MA Financial Group is currently generating about -0.07 per unit of risk. If you would invest 76.00 in Ainsworth Game Technology on October 11, 2024 and sell it today you would lose (1.00) from holding Ainsworth Game Technology or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. MA Financial Group
Performance |
| Timeline |
| Ainsworth Game Technology |
| MA Financial Group |
Ainsworth Game and MA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and MA Financial
The main advantage of trading using opposite Ainsworth Game and MA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, MA Financial 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 MA Financial will offset losses from the drop in MA Financial's long position.| Ainsworth Game vs. Chalice Mining Limited | Ainsworth Game vs. Retail Food Group | Ainsworth Game vs. My Foodie Box | Ainsworth Game vs. Truscott Mining Corp |
| MA Financial vs. Kip McGrath Education | MA Financial vs. Home Consortium | MA Financial vs. Pinnacle Investment Management | MA Financial vs. Ainsworth Game Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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