Correlation Between Ainsworth Game and Global Engine
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Global Engine 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 Global Engine 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 Global Engine Group, you can compare the effects of market volatilities on Ainsworth Game and Global Engine 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 Global Engine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Global Engine.
Diversification Opportunities for Ainsworth Game and Global Engine
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ainsworth and Global is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Global Engine Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Engine 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 Global Engine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Engine Group has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Global Engine go up and down completely randomly.
Pair Corralation between Ainsworth Game and Global Engine
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the Global Engine. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ainsworth Game Technology is 3.53 times less risky than Global Engine. The pink sheet trades about -0.1 of its potential returns per unit of risk. The Global Engine Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 459.00 in Global Engine Group on August 30, 2024 and sell it today you would lose (68.00) from holding Global Engine Group or give up 14.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Global Engine Group
Performance |
| Timeline |
| Ainsworth Game Technology |
| Global Engine Group |
Ainsworth Game and Global Engine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Global Engine
The main advantage of trading using opposite Ainsworth Game and Global Engine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Global Engine 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 Global Engine will offset losses from the drop in Global Engine's long position.| Ainsworth Game vs. Light Wonder | Ainsworth Game vs. Nasdaq Inc | Ainsworth Game vs. Vertiv Holdings Co | Ainsworth Game vs. IONQ Inc |
| Global Engine vs. Ainsworth Game Technology | Global Engine vs. Evolution Gaming Group | Global Engine vs. Wicket Gaming AB | Global Engine vs. Herc 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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