Correlation Between Ainsworth Game and Pact Group
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Pact 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 Pact 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 Pact Group Holdings, you can compare the effects of market volatilities on Ainsworth Game and Pact 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 Pact Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Pact Group.
Diversification Opportunities for Ainsworth Game and Pact Group
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ainsworth and Pact is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Pact Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pact Group Holdings 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 Pact Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pact Group Holdings has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Pact Group go up and down completely randomly.
Pair Corralation between Ainsworth Game and Pact Group
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 1.24 times more return on investment than Pact Group. However, Ainsworth Game is 1.24 times more volatile than Pact Group Holdings. It trades about 0.0 of its potential returns per unit of risk. Pact Group Holdings is currently generating about 0.0 per unit of risk. If you would invest 100.00 in Ainsworth Game Technology on September 14, 2024 and sell it today you would lose (19.00) from holding Ainsworth Game Technology or give up 19.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Pact Group Holdings
Performance |
| Timeline |
| Ainsworth Game Technology |
| Pact Group Holdings |
Ainsworth Game and Pact Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Pact Group
The main advantage of trading using opposite Ainsworth Game and Pact Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Pact 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 Pact Group will offset losses from the drop in Pact Group's long position.| Ainsworth Game vs. The Environmental Group | Ainsworth Game vs. Infomedia | Ainsworth Game vs. Super Retail Group | Ainsworth Game vs. COAST ENTERTAINMENT HOLDINGS |
| Pact Group vs. Northern Star Resources | Pact Group vs. Evolution Mining | Pact Group vs. Bluescope Steel | Pact Group vs. De Grey Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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