Correlation Between Ainsworth Game and Fossil
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Fossil 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 Fossil 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 Fossil Group, you can compare the effects of market volatilities on Ainsworth Game and Fossil 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 Fossil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Fossil.
Diversification Opportunities for Ainsworth Game and Fossil
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ainsworth and Fossil is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Fossil Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fossil Group 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 Fossil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fossil Group has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Fossil go up and down completely randomly.
Pair Corralation between Ainsworth Game and Fossil
Assuming the 90 days horizon Ainsworth Game Technology is expected to generate 0.59 times more return on investment than Fossil. However, Ainsworth Game Technology is 1.71 times less risky than Fossil. It trades about -0.01 of its potential returns per unit of risk. Fossil Group is currently generating about -0.03 per unit of risk. If you would invest 70.00 in Ainsworth Game Technology on September 3, 2024 and sell it today you would lose (23.00) from holding Ainsworth Game Technology or give up 32.86% 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. Fossil Group
Performance |
| Timeline |
| Ainsworth Game Technology |
| Fossil Group |
Ainsworth Game and Fossil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Fossil
The main advantage of trading using opposite Ainsworth Game and Fossil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Fossil 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 Fossil will offset losses from the drop in Fossil's long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| Fossil vs. Lanvin Group Holdings | Fossil vs. Signet Jewelers | Fossil vs. Tapestry | Fossil vs. Capri Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |