Correlation Between Ainsworth Game and Regal Funds
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Regal Funds 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 Regal Funds 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 Regal Funds Management, you can compare the effects of market volatilities on Ainsworth Game and Regal Funds 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 Regal Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Regal Funds.
Diversification Opportunities for Ainsworth Game and Regal Funds
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ainsworth and Regal is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Regal Funds Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regal Funds 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 Regal Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regal Funds Management has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Regal Funds go up and down completely randomly.
Pair Corralation between Ainsworth Game and Regal Funds
Assuming the 90 days trading horizon Ainsworth Game is expected to generate 1.68 times less return on investment than Regal Funds. In addition to that, Ainsworth Game is 1.41 times more volatile than Regal Funds Management. It trades about 0.14 of its total potential returns per unit of risk. Regal Funds Management is currently generating about 0.32 per unit of volatility. If you would invest 356.00 in Regal Funds Management on September 3, 2024 and sell it today you would earn a total of 47.00 from holding Regal Funds Management or generate 13.2% 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. Regal Funds Management
Performance |
| Timeline |
| Ainsworth Game Technology |
| Regal Funds Management |
Ainsworth Game and Regal Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Regal Funds
The main advantage of trading using opposite Ainsworth Game and Regal Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Regal Funds 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 Regal Funds will offset losses from the drop in Regal Funds' long position.| Ainsworth Game vs. Westpac Banking | Ainsworth Game vs. Champion Iron | Ainsworth Game vs. iShares Global Healthcare | Ainsworth Game vs. Peel Mining |
| Regal Funds vs. Audio Pixels Holdings | Regal Funds vs. Iodm | Regal Funds vs. Nsx | Regal Funds vs. TTG Fintech |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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