Correlation Between Ainsworth Game and Playstudios
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Playstudios 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 Playstudios 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 Playstudios, you can compare the effects of market volatilities on Ainsworth Game and Playstudios 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 Playstudios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Playstudios.
Diversification Opportunities for Ainsworth Game and Playstudios
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and Playstudios is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Playstudios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playstudios 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 Playstudios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playstudios has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Playstudios go up and down completely randomly.
Pair Corralation between Ainsworth Game and Playstudios
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the Playstudios. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ainsworth Game Technology is 1.99 times less risky than Playstudios. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Playstudios is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 141.00 in Playstudios on August 30, 2024 and sell it today you would earn a total of 44.00 from holding Playstudios or generate 31.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Playstudios
Performance |
| Timeline |
| Ainsworth Game Technology |
| Playstudios |
Ainsworth Game and Playstudios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Playstudios
The main advantage of trading using opposite Ainsworth Game and Playstudios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Playstudios 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 Playstudios will offset losses from the drop in Playstudios' long position.| Ainsworth Game vs. Light Wonder | Ainsworth Game vs. Nasdaq Inc | Ainsworth Game vs. Vertiv Holdings Co | Ainsworth Game vs. IONQ Inc |
| Playstudios vs. SohuCom | Playstudios vs. Snail, Class A | Playstudios vs. i3 Interactive | Playstudios vs. Bragg Gaming Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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