Correlation Between Ainsworth Game and NetEase
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and NetEase 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 NetEase 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 NetEase, you can compare the effects of market volatilities on Ainsworth Game and NetEase 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 NetEase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and NetEase.
Diversification Opportunities for Ainsworth Game and NetEase
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ainsworth and NetEase is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and NetEase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetEase 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 NetEase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetEase has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and NetEase go up and down completely randomly.
Pair Corralation between Ainsworth Game and NetEase
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the NetEase. In addition to that, Ainsworth Game is 1.2 times more volatile than NetEase. It trades about -0.02 of its total potential returns per unit of risk. NetEase is currently generating about 0.01 per unit of volatility. If you would invest 8,500 in NetEase on August 27, 2024 and sell it today you would earn a total of 145.00 from holding NetEase or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. NetEase
Performance |
| Timeline |
| Ainsworth Game Technology |
| NetEase |
Ainsworth Game and NetEase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and NetEase
The main advantage of trading using opposite Ainsworth Game and NetEase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, NetEase 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 NetEase will offset losses from the drop in NetEase's long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| NetEase vs. Playstudios | NetEase vs. Talkspace | NetEase vs. Katapult Holdings Equity | NetEase vs. Aquagold International |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |