Correlation Between Ainsworth Game and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and IX Acquisition 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 IX Acquisition 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 IX Acquisition Corp, you can compare the effects of market volatilities on Ainsworth Game and IX Acquisition 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 IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and IX Acquisition.
Diversification Opportunities for Ainsworth Game and IX Acquisition
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and IXAQU is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and IX Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IX Acquisition Corp 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 IX Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IX Acquisition Corp has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and IX Acquisition go up and down completely randomly.
Pair Corralation between Ainsworth Game and IX Acquisition
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the IX Acquisition. In addition to that, Ainsworth Game is 12.04 times more volatile than IX Acquisition Corp. It trades about -0.1 of its total potential returns per unit of risk. IX Acquisition Corp is currently generating about -0.26 per unit of volatility. If you would invest 1,149 in IX Acquisition Corp on August 30, 2024 and sell it today you would lose (8.00) from holding IX Acquisition Corp or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.88% |
| Values | Daily Returns |
Ainsworth Game Technology vs. IX Acquisition Corp
Performance |
| Timeline |
| Ainsworth Game Technology |
| IX Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ainsworth Game and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and IX Acquisition
The main advantage of trading using opposite Ainsworth Game and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, IX Acquisition 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 IX Acquisition will offset losses from the drop in IX Acquisition's long position.| Ainsworth Game vs. Light Wonder | Ainsworth Game vs. Nasdaq Inc | Ainsworth Game vs. Vertiv Holdings Co | Ainsworth Game vs. IONQ Inc |
| IX Acquisition vs. Rocky Brands | IX Acquisition vs. Mattel Inc | IX Acquisition vs. Playtika Holding Corp | IX Acquisition vs. Inter Parfums |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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