Correlation Between Ainsworth Game and FARO Technologies
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and FARO Technologies 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 FARO Technologies 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 FARO Technologies, you can compare the effects of market volatilities on Ainsworth Game and FARO Technologies 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 FARO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and FARO Technologies.
Diversification Opportunities for Ainsworth Game and FARO Technologies
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ainsworth and FARO is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and FARO Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FARO Technologies 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 FARO Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FARO Technologies has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and FARO Technologies go up and down completely randomly.
Pair Corralation between Ainsworth Game and FARO Technologies
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the FARO Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ainsworth Game Technology is 1.3 times less risky than FARO Technologies. The pink sheet trades about -0.01 of its potential returns per unit of risk. The FARO Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,147 in FARO Technologies on August 28, 2024 and sell it today you would lose (456.00) from holding FARO Technologies or give up 14.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. FARO Technologies
Performance |
| Timeline |
| Ainsworth Game Technology |
| FARO Technologies |
Ainsworth Game and FARO Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and FARO Technologies
The main advantage of trading using opposite Ainsworth Game and FARO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, FARO Technologies 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 FARO Technologies will offset losses from the drop in FARO Technologies' long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| FARO Technologies vs. ESCO Technologies | FARO Technologies vs. Genasys | FARO Technologies vs. Cepton Inc | FARO Technologies vs. Darkpulse |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |