Correlation Between Ainsworth Game and Pacific Current
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Pacific Current 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 Pacific Current 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 Pacific Current Group, you can compare the effects of market volatilities on Ainsworth Game and Pacific Current 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 Pacific Current. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Pacific Current.
Diversification Opportunities for Ainsworth Game and Pacific Current
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ainsworth and Pacific is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Pacific Current Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Current 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 Pacific Current. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Current Group has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Pacific Current go up and down completely randomly.
Pair Corralation between Ainsworth Game and Pacific Current
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Pacific Current. In addition to that, Ainsworth Game is 2.0 times more volatile than Pacific Current Group. It trades about -0.04 of its total potential returns per unit of risk. Pacific Current Group is currently generating about 0.07 per unit of volatility. If you would invest 830.00 in Pacific Current Group on September 4, 2024 and sell it today you would earn a total of 242.00 from holding Pacific Current Group or generate 29.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Pacific Current Group
Performance |
| Timeline |
| Ainsworth Game Technology |
| Pacific Current Group |
Ainsworth Game and Pacific Current Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Pacific Current
The main advantage of trading using opposite Ainsworth Game and Pacific Current positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Pacific Current 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 Pacific Current will offset losses from the drop in Pacific Current's long position.| Ainsworth Game vs. Aneka Tambang Tbk | Ainsworth Game vs. BHP Group Limited | Ainsworth Game vs. Commonwealth Bank of | Ainsworth Game vs. Commonwealth Bank of |
| Pacific Current vs. Thorney Technologies | Pacific Current vs. BTC Health Limited | Pacific Current vs. Epsilon Healthcare | Pacific Current vs. Ras Technology Holdings |
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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