Correlation Between Ainsworth Game and Funko
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Funko 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 Funko 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 Funko Inc, you can compare the effects of market volatilities on Ainsworth Game and Funko 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 Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Funko.
Diversification Opportunities for Ainsworth Game and Funko
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ainsworth and Funko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc 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 Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Funko go up and down completely randomly.
Pair Corralation between Ainsworth Game and Funko
Assuming the 90 days horizon Ainsworth Game is expected to generate 6.06 times less return on investment than Funko. But when comparing it to its historical volatility, Ainsworth Game Technology is 1.88 times less risky than Funko. It trades about 0.01 of its potential returns per unit of risk. Funko Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,151 in Funko Inc on September 5, 2024 and sell it today you would earn a total of 10.00 from holding Funko Inc or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Funko Inc
Performance |
| Timeline |
| Ainsworth Game Technology |
| Funko Inc |
Ainsworth Game and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Funko
The main advantage of trading using opposite Ainsworth Game and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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