Correlation Between Ainsworth Game and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Macquarie Group 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 Macquarie Group 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 Macquarie Group Ltd, you can compare the effects of market volatilities on Ainsworth Game and Macquarie Group 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 Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Macquarie Group.
Diversification Opportunities for Ainsworth Game and Macquarie Group
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ainsworth and Macquarie is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Macquarie Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie 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 Macquarie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Macquarie Group go up and down completely randomly.
Pair Corralation between Ainsworth Game and Macquarie Group
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Macquarie Group. In addition to that, Ainsworth Game is 9.98 times more volatile than Macquarie Group Ltd. It trades about -0.09 of its total potential returns per unit of risk. Macquarie Group Ltd is currently generating about -0.03 per unit of volatility. If you would invest 10,446 in Macquarie Group Ltd on November 7, 2024 and sell it today you would lose (15.00) from holding Macquarie Group Ltd or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Macquarie Group Ltd
Performance |
| Timeline |
| Ainsworth Game Technology |
| Macquarie Group |
Ainsworth Game and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Macquarie Group
The main advantage of trading using opposite Ainsworth Game and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Macquarie Group 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 Macquarie Group will offset losses from the drop in Macquarie Group's long position.| Ainsworth Game vs. Audio Pixels Holdings | Ainsworth Game vs. Iodm | Ainsworth Game vs. Nsx | Ainsworth Game vs. TTG Fintech |
| Macquarie Group vs. Clime Investment Management | Macquarie Group vs. Flagship Investments | Macquarie Group vs. Auctus Alternative Investments | Macquarie Group vs. Aurelia 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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