Correlation Between Ainsworth Game and Keurig Dr
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Keurig Dr 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 Keurig Dr 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 Keurig Dr Pepper, you can compare the effects of market volatilities on Ainsworth Game and Keurig Dr 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 Keurig Dr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Keurig Dr.
Diversification Opportunities for Ainsworth Game and Keurig Dr
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ainsworth and Keurig is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Keurig Dr Pepper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keurig Dr Pepper 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 Keurig Dr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keurig Dr Pepper has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Keurig Dr go up and down completely randomly.
Pair Corralation between Ainsworth Game and Keurig Dr
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the Keurig Dr. In addition to that, Ainsworth Game is 1.65 times more volatile than Keurig Dr Pepper. It trades about -0.16 of its total potential returns per unit of risk. Keurig Dr Pepper is currently generating about -0.16 per unit of volatility. If you would invest 3,692 in Keurig Dr Pepper on September 2, 2024 and sell it today you would lose (427.00) from holding Keurig Dr Pepper or give up 11.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Keurig Dr Pepper
Performance |
| Timeline |
| Ainsworth Game Technology |
| Keurig Dr Pepper |
Ainsworth Game and Keurig Dr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Keurig Dr
The main advantage of trading using opposite Ainsworth Game and Keurig Dr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Keurig Dr 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 Keurig Dr will offset losses from the drop in Keurig Dr's long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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