Correlation Between Ainsworth Game and Above Food
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Above Food 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 Above Food 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 Above Food Ingredients, you can compare the effects of market volatilities on Ainsworth Game and Above Food 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 Above Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Above Food.
Diversification Opportunities for Ainsworth Game and Above Food
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ainsworth and Above is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Above Food Ingredients in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Above Food Ingredients 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 Above Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Above Food Ingredients has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Above Food go up and down completely randomly.
Pair Corralation between Ainsworth Game and Above Food
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the Above Food. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ainsworth Game Technology is 9.31 times less risky than Above Food. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Above Food Ingredients is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5.50 in Above Food Ingredients on September 2, 2024 and sell it today you would lose (1.53) from holding Above Food Ingredients or give up 27.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 43.95% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Above Food Ingredients
Performance |
| Timeline |
| Ainsworth Game Technology |
| Above Food Ingredients |
Ainsworth Game and Above Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Above Food
The main advantage of trading using opposite Ainsworth Game and Above Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Above Food 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 Above Food will offset losses from the drop in Above Food's long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| Above Food vs. Tandy Leather Factory | Above Food vs. Skechers USA | Above Food vs. Kontoor Brands | Above Food vs. Nike Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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