Correlation Between Ainsworth Game and Patriot Lithium
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Patriot Lithium 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 Patriot Lithium 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 Patriot Lithium, you can compare the effects of market volatilities on Ainsworth Game and Patriot Lithium 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 Patriot Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Patriot Lithium.
Diversification Opportunities for Ainsworth Game and Patriot Lithium
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ainsworth and Patriot is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Patriot Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patriot Lithium 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 Patriot Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patriot Lithium has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Patriot Lithium go up and down completely randomly.
Pair Corralation between Ainsworth Game and Patriot Lithium
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 0.55 times more return on investment than Patriot Lithium. However, Ainsworth Game Technology is 1.81 times less risky than Patriot Lithium. It trades about -0.01 of its potential returns per unit of risk. Patriot Lithium is currently generating about -0.04 per unit of risk. If you would invest 107.00 in Ainsworth Game Technology on September 5, 2024 and sell it today you would lose (33.00) from holding Ainsworth Game Technology or give up 30.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Patriot Lithium
Performance |
| Timeline |
| Ainsworth Game Technology |
| Patriot Lithium |
Ainsworth Game and Patriot Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Patriot Lithium
The main advantage of trading using opposite Ainsworth Game and Patriot Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Patriot Lithium 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 Patriot Lithium will offset losses from the drop in Patriot Lithium'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 |
| Patriot Lithium vs. Bio Gene Technology | Patriot Lithium vs. Macquarie Technology Group | Patriot Lithium vs. Ainsworth Game Technology | Patriot Lithium 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |