Correlation Between Bluebet Holdings and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Bluebet Holdings and Ainsworth Game 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 Bluebet Holdings and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluebet Holdings and Ainsworth Game Technology, you can compare the effects of market volatilities on Bluebet Holdings and Ainsworth Game 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 Bluebet Holdings with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluebet Holdings and Ainsworth Game.
Diversification Opportunities for Bluebet Holdings and Ainsworth Game
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bluebet and Ainsworth is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bluebet Holdings and Ainsworth Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainsworth Game Technology and Bluebet Holdings 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 Bluebet Holdings are associated (or correlated) with Ainsworth Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainsworth Game Technology has no effect on the direction of Bluebet Holdings i.e., Bluebet Holdings and Ainsworth Game go up and down completely randomly.
Pair Corralation between Bluebet Holdings and Ainsworth Game
Assuming the 90 days trading horizon Bluebet Holdings is expected to generate 1.27 times less return on investment than Ainsworth Game. In addition to that, Bluebet Holdings is 1.35 times more volatile than Ainsworth Game Technology. It trades about 0.06 of its total potential returns per unit of risk. Ainsworth Game Technology is currently generating about 0.11 per unit of volatility. If you would invest 70.00 in Ainsworth Game Technology on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Ainsworth Game Technology or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluebet Holdings vs. Ainsworth Game Technology
Performance |
| Timeline |
| Bluebet Holdings |
| Ainsworth Game Technology |
Bluebet Holdings and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluebet Holdings and Ainsworth Game
The main advantage of trading using opposite Bluebet Holdings and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluebet Holdings position performs unexpectedly, Ainsworth Game 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 Ainsworth Game will offset losses from the drop in Ainsworth Game's long position.| Bluebet Holdings vs. Ainsworth Game Technology | Bluebet Holdings vs. Mayfield Childcare | Bluebet Holdings vs. Ora Banda Mining | Bluebet Holdings vs. Talisman Mining |
| Ainsworth Game vs. Aneka Tambang Tbk | Ainsworth Game vs. BHP Group Limited | Ainsworth Game vs. Commonwealth Bank of | Ainsworth Game vs. Commonwealth Bank of |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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