Correlation Between Ainsworth Game and Verra Mobility
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Verra Mobility 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 Verra Mobility 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 Verra Mobility Corp, you can compare the effects of market volatilities on Ainsworth Game and Verra Mobility 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 Verra Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Verra Mobility.
Diversification Opportunities for Ainsworth Game and Verra Mobility
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ainsworth and Verra is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Verra Mobility Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verra Mobility Corp 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 Verra Mobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verra Mobility Corp has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Verra Mobility go up and down completely randomly.
Pair Corralation between Ainsworth Game and Verra Mobility
Assuming the 90 days horizon Ainsworth Game Technology is expected to generate 0.76 times more return on investment than Verra Mobility. However, Ainsworth Game Technology is 1.32 times less risky than Verra Mobility. It trades about -0.16 of its potential returns per unit of risk. Verra Mobility Corp is currently generating about -0.16 per unit of risk. If you would invest 51.00 in Ainsworth Game Technology on August 28, 2024 and sell it today you would lose (4.00) from holding Ainsworth Game Technology or give up 7.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Verra Mobility Corp
Performance |
| Timeline |
| Ainsworth Game Technology |
| Verra Mobility Corp |
Ainsworth Game and Verra Mobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Verra Mobility
The main advantage of trading using opposite Ainsworth Game and Verra Mobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Verra Mobility 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 Verra Mobility will offset losses from the drop in Verra Mobility's long position.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| Verra Mobility vs. International Money Express | Verra Mobility vs. Option Care Health | Verra Mobility vs. R1 RCM Inc | Verra Mobility 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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