Correlation Between AiMedia Technologies and G8 Education
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and G8 Education 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 G8 Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and G8 Education, you can compare the effects of market volatilities on AiMedia Technologies and G8 Education 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 G8 Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and G8 Education.
Diversification Opportunities for AiMedia Technologies and G8 Education
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between AiMedia and GEM is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and G8 Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G8 Education 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 G8 Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G8 Education has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and G8 Education go up and down completely randomly.
Pair Corralation between AiMedia Technologies and G8 Education
Assuming the 90 days trading horizon AiMedia Technologies is expected to under-perform the G8 Education. In addition to that, AiMedia Technologies is 1.95 times more volatile than G8 Education. It trades about -0.24 of its total potential returns per unit of risk. G8 Education is currently generating about 0.01 per unit of volatility. If you would invest 134.00 in G8 Education on October 22, 2024 and sell it today you would earn a total of 0.00 from holding G8 Education or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. G8 Education
Performance |
| Timeline |
| AiMedia Technologies |
| G8 Education |
AiMedia Technologies and G8 Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and G8 Education
The main advantage of trading using opposite AiMedia Technologies and G8 Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, G8 Education 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 G8 Education will offset losses from the drop in G8 Education's long position.| AiMedia Technologies vs. G8 Education | AiMedia Technologies vs. Pinnacle Investment Management | AiMedia Technologies vs. Autosports Group | AiMedia Technologies vs. Platinum Asset Management |
| G8 Education vs. DY6 Metals | G8 Education vs. Sports Entertainment Group | G8 Education vs. Centaurus Metals | G8 Education vs. Dexus Convenience Retail |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |