Correlation Between Ainsworth Game and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Platinum Asset 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 Platinum Asset 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 Platinum Asset Management, you can compare the effects of market volatilities on Ainsworth Game and Platinum Asset 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 Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Platinum Asset.
Diversification Opportunities for Ainsworth Game and Platinum Asset
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ainsworth and Platinum is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Platinum Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asset Management 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 Platinum Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asset Management has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Platinum Asset go up and down completely randomly.
Pair Corralation between Ainsworth Game and Platinum Asset
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Platinum Asset. In addition to that, Ainsworth Game is 1.23 times more volatile than Platinum Asset Management. It trades about -0.05 of its total potential returns per unit of risk. Platinum Asset Management is currently generating about 0.04 per unit of volatility. If you would invest 97.00 in Platinum Asset Management on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Platinum Asset Management or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Platinum Asset Management
Performance |
| Timeline |
| Ainsworth Game Technology |
| Platinum Asset Management |
Ainsworth Game and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Platinum Asset
The main advantage of trading using opposite Ainsworth Game and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Platinum Asset 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 Platinum Asset will offset losses from the drop in Platinum Asset's long position.| Ainsworth Game vs. Summit Resources Limited | Ainsworth Game vs. Ecofibre | Ainsworth Game vs. iShares Global Healthcare | Ainsworth Game vs. Adriatic Metals Plc |
| Platinum Asset vs. National Australia Bank | Platinum Asset vs. National Australia Bank | Platinum Asset vs. Westpac Banking | Platinum Asset vs. National Australia Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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