Correlation Between Ainsworth Game and Light Wonder
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Light Wonder 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 Light Wonder 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 Light Wonder, you can compare the effects of market volatilities on Ainsworth Game and Light Wonder 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 Light Wonder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Light Wonder.
Diversification Opportunities for Ainsworth Game and Light Wonder
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ainsworth and Light is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Light Wonder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Light Wonder 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 Light Wonder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Light Wonder has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Light Wonder go up and down completely randomly.
Pair Corralation between Ainsworth Game and Light Wonder
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the Light Wonder. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ainsworth Game Technology is 1.26 times less risky than Light Wonder. The pink sheet trades about -0.17 of its potential returns per unit of risk. The Light Wonder is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,569 in Light Wonder on August 27, 2024 and sell it today you would earn a total of 276.00 from holding Light Wonder or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Light Wonder
Performance |
| Timeline |
| Ainsworth Game Technology |
| Light Wonder |
Ainsworth Game and Light Wonder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Light Wonder
The main advantage of trading using opposite Ainsworth Game and Light Wonder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Light Wonder 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 Light Wonder will offset losses from the drop in Light Wonder's long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| Light Wonder vs. Codere Online Corp | Light Wonder vs. Inspired Entertainment | Light Wonder vs. International Game Technology | Light Wonder vs. Accel Entertainment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |