Correlation Between AiMedia Technologies and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Ainsworth Game 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 AiMedia Technologies and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Ainsworth Game Technology, you can compare the effects of market volatilities on AiMedia Technologies and Ainsworth Game 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 AiMedia Technologies with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Ainsworth Game.
Diversification Opportunities for AiMedia Technologies and Ainsworth Game
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AiMedia and Ainsworth is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Ainsworth Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainsworth Game Technology and AiMedia Technologies 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 AiMedia Technologies are associated (or correlated) with Ainsworth Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainsworth Game Technology has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Ainsworth Game go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Ainsworth Game
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 1.69 times more return on investment than Ainsworth Game. However, AiMedia Technologies is 1.69 times more volatile than Ainsworth Game Technology. It trades about 0.03 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.07 per unit of risk. If you would invest 76.00 in AiMedia Technologies on August 30, 2024 and sell it today you would earn a total of 1.00 from holding AiMedia Technologies or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Ainsworth Game Technology
Performance |
| Timeline |
| AiMedia Technologies |
| Ainsworth Game Technology |
AiMedia Technologies and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Ainsworth Game
The main advantage of trading using opposite AiMedia Technologies and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Ainsworth Game 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 Ainsworth Game will offset losses from the drop in Ainsworth Game's long position.| AiMedia Technologies vs. Aneka Tambang Tbk | AiMedia Technologies vs. Unibail Rodamco Westfield SE | AiMedia Technologies vs. Macquarie Group | AiMedia Technologies vs. Commonwealth Bank |
| Ainsworth Game vs. Greenvale Energy | Ainsworth Game vs. Summit Resources Limited | Ainsworth Game vs. Ecofibre | Ainsworth Game vs. iShares Global Healthcare |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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