Correlation Between Ainsworth Game and Ras Technology
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Ras Technology 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 Ras Technology 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 Ras Technology Holdings, you can compare the effects of market volatilities on Ainsworth Game and Ras Technology 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 Ras Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Ras Technology.
Diversification Opportunities for Ainsworth Game and Ras Technology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ainsworth and Ras is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Ras Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ras Technology 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 Ras Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ras Technology Holdings has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Ras Technology go up and down completely randomly.
Pair Corralation between Ainsworth Game and Ras Technology
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Ras Technology. But the stock apears to be less risky and, when comparing its historical volatility, Ainsworth Game Technology is 1.12 times less risky than Ras Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Ras Technology Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Ras Technology Holdings on August 28, 2024 and sell it today you would earn a total of 56.00 from holding Ras Technology Holdings or generate 112.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Ras Technology Holdings
Performance |
| Timeline |
| Ainsworth Game Technology |
| Ras Technology Holdings |
Ainsworth Game and Ras Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Ras Technology
The main advantage of trading using opposite Ainsworth Game and Ras Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Ras Technology 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 Ras Technology will offset losses from the drop in Ras Technology'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 |
| Ras Technology vs. Aneka Tambang Tbk | Ras Technology vs. BHP Group Limited | Ras Technology vs. Rio Tinto | Ras Technology vs. Macquarie Group Ltd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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