Correlation Between Ainsworth Game and Hawkins
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Hawkins 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 Hawkins 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 Hawkins, you can compare the effects of market volatilities on Ainsworth Game and Hawkins 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 Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Hawkins.
Diversification Opportunities for Ainsworth Game and Hawkins
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and Hawkins is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins 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 Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Hawkins go up and down completely randomly.
Pair Corralation between Ainsworth Game and Hawkins
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the Hawkins. In addition to that, Ainsworth Game is 1.09 times more volatile than Hawkins. It trades about -0.06 of its total potential returns per unit of risk. Hawkins is currently generating about 0.14 per unit of volatility. If you would invest 6,325 in Hawkins on September 4, 2024 and sell it today you would earn a total of 7,340 from holding Hawkins or generate 116.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Hawkins
Performance |
| Timeline |
| Ainsworth Game Technology |
| Hawkins |
Ainsworth Game and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Hawkins
The main advantage of trading using opposite Ainsworth Game and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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