Correlation Between Bisalloy Steel and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Bisalloy Steel 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 Bisalloy Steel and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bisalloy Steel Group and Ainsworth Game Technology, you can compare the effects of market volatilities on Bisalloy Steel 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 Bisalloy Steel with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bisalloy Steel and Ainsworth Game.
Diversification Opportunities for Bisalloy Steel and Ainsworth Game
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bisalloy and Ainsworth is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bisalloy Steel Group 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 Bisalloy Steel 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 Bisalloy Steel Group 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 Bisalloy Steel i.e., Bisalloy Steel and Ainsworth Game go up and down completely randomly.
Pair Corralation between Bisalloy Steel and Ainsworth Game
Assuming the 90 days trading horizon Bisalloy Steel Group is expected to generate 2.0 times more return on investment than Ainsworth Game. However, Bisalloy Steel is 2.0 times more volatile than Ainsworth Game Technology. It trades about 0.16 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about 0.11 per unit of risk. If you would invest 319.00 in Bisalloy Steel Group on September 2, 2024 and sell it today you would earn a total of 54.00 from holding Bisalloy Steel Group or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bisalloy Steel Group vs. Ainsworth Game Technology
Performance |
| Timeline |
| Bisalloy Steel Group |
| Ainsworth Game Technology |
Bisalloy Steel and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bisalloy Steel and Ainsworth Game
The main advantage of trading using opposite Bisalloy Steel and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bisalloy Steel 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.| Bisalloy Steel vs. Northern Star Resources | Bisalloy Steel vs. Evolution Mining | Bisalloy Steel vs. Sandfire Resources NL | Bisalloy Steel vs. Aneka Tambang Tbk |
| Ainsworth Game vs. iShares Global Healthcare | Ainsworth Game vs. Australian Dairy Farms | Ainsworth Game vs. Adriatic Metals Plc | Ainsworth Game vs. Australian Agricultural |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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