Correlation Between Ainsworth Game and Origin Materials
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Origin Materials 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 Origin Materials 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 Origin Materials, you can compare the effects of market volatilities on Ainsworth Game and Origin Materials 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 Origin Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Origin Materials.
Diversification Opportunities for Ainsworth Game and Origin Materials
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainsworth and Origin is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Origin Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Materials 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 Origin Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Materials has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Origin Materials go up and down completely randomly.
Pair Corralation between Ainsworth Game and Origin Materials
Assuming the 90 days horizon Ainsworth Game Technology is expected to generate 0.73 times more return on investment than Origin Materials. However, Ainsworth Game Technology is 1.37 times less risky than Origin Materials. It trades about 0.17 of its potential returns per unit of risk. Origin Materials is currently generating about -0.11 per unit of risk. If you would invest 46.00 in Ainsworth Game Technology on November 29, 2024 and sell it today you would earn a total of 7.00 from holding Ainsworth Game Technology or generate 15.22% 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. Origin Materials
Performance |
| Timeline |
| Ainsworth Game Technology |
| Origin Materials |
Ainsworth Game and Origin Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Origin Materials
The main advantage of trading using opposite Ainsworth Game and Origin Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Origin Materials 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 Origin Materials will offset losses from the drop in Origin Materials' long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| Origin Materials vs. Tronox Holdings PLC | Origin Materials vs. Valhi Inc | Origin Materials vs. Lsb Industries | Origin Materials vs. Huntsman |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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