Correlation Between Ainsworth Game and Reservoir Media
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Reservoir Media 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 Reservoir Media 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 Reservoir Media, you can compare the effects of market volatilities on Ainsworth Game and Reservoir Media 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 Reservoir Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Reservoir Media.
Diversification Opportunities for Ainsworth Game and Reservoir Media
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ainsworth and Reservoir is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Reservoir Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reservoir Media 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 Reservoir Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reservoir Media has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Reservoir Media go up and down completely randomly.
Pair Corralation between Ainsworth Game and Reservoir Media
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the Reservoir Media. In addition to that, Ainsworth Game is 1.36 times more volatile than Reservoir Media. It trades about -0.01 of its total potential returns per unit of risk. Reservoir Media is currently generating about 0.05 per unit of volatility. If you would invest 650.00 in Reservoir Media on September 4, 2024 and sell it today you would earn a total of 312.00 from holding Reservoir Media or generate 48.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Reservoir Media
Performance |
| Timeline |
| Ainsworth Game Technology |
| Reservoir Media |
Ainsworth Game and Reservoir Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Reservoir Media
The main advantage of trading using opposite Ainsworth Game and Reservoir Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Reservoir Media 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 Reservoir Media will offset losses from the drop in Reservoir Media's long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| Reservoir Media vs. Reading International | Reservoir Media vs. Marcus | Reservoir Media vs. Gaia Inc | Reservoir Media vs. News Corp B |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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