Correlation Between Ainsworth Game and Sky Metals
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Sky Metals 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 Sky Metals 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 Sky Metals, you can compare the effects of market volatilities on Ainsworth Game and Sky Metals 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 Sky Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Sky Metals.
Diversification Opportunities for Ainsworth Game and Sky Metals
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ainsworth and Sky is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Sky Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Metals 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 Sky Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Metals has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Sky Metals go up and down completely randomly.
Pair Corralation between Ainsworth Game and Sky Metals
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to under-perform the Sky Metals. But the stock apears to be less risky and, when comparing its historical volatility, Ainsworth Game Technology is 1.5 times less risky than Sky Metals. The stock trades about -0.04 of its potential returns per unit of risk. The Sky Metals is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3.50 in Sky Metals on September 4, 2024 and sell it today you would earn a total of 1.60 from holding Sky Metals or generate 45.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Sky Metals
Performance |
| Timeline |
| Ainsworth Game Technology |
| Sky Metals |
Ainsworth Game and Sky Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Sky Metals
The main advantage of trading using opposite Ainsworth Game and Sky Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Sky Metals 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 Sky Metals will offset losses from the drop in Sky Metals' long position.| Ainsworth Game vs. Aneka Tambang Tbk | Ainsworth Game vs. BHP Group Limited | Ainsworth Game vs. Commonwealth Bank of | Ainsworth Game vs. Commonwealth Bank of |
| Sky Metals vs. Northern Star Resources | Sky Metals vs. Evolution Mining | Sky Metals vs. Bluescope Steel | Sky Metals vs. Sandfire Resources NL |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |