Correlation Between Ainsworth Game and Regis Healthcare
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Regis Healthcare 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 Regis Healthcare 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 Regis Healthcare, you can compare the effects of market volatilities on Ainsworth Game and Regis Healthcare 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 Regis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Regis Healthcare.
Diversification Opportunities for Ainsworth Game and Regis Healthcare
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and Regis is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Regis Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Healthcare 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 Regis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Healthcare has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Regis Healthcare go up and down completely randomly.
Pair Corralation between Ainsworth Game and Regis Healthcare
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Regis Healthcare. In addition to that, Ainsworth Game is 1.32 times more volatile than Regis Healthcare. It trades about -0.09 of its total potential returns per unit of risk. Regis Healthcare is currently generating about 0.07 per unit of volatility. If you would invest 629.00 in Regis Healthcare on November 7, 2024 and sell it today you would earn a total of 16.00 from holding Regis Healthcare or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Regis Healthcare
Performance |
| Timeline |
| Ainsworth Game Technology |
| Regis Healthcare |
Ainsworth Game and Regis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Regis Healthcare
The main advantage of trading using opposite Ainsworth Game and Regis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Regis Healthcare 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 Regis Healthcare will offset losses from the drop in Regis Healthcare's long position.| Ainsworth Game vs. Audio Pixels Holdings | Ainsworth Game vs. Iodm | Ainsworth Game vs. Nsx | Ainsworth Game vs. TTG Fintech |
| Regis Healthcare vs. Sports Entertainment Group | Regis Healthcare vs. Treasury Wine Estates | Regis Healthcare vs. Retail Food Group | Regis Healthcare vs. Kip McGrath Education |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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