Correlation Between BKI Investment and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both BKI Investment 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 BKI Investment and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKI Investment and Ainsworth Game Technology, you can compare the effects of market volatilities on BKI Investment 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 BKI Investment with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKI Investment and Ainsworth Game.
Diversification Opportunities for BKI Investment and Ainsworth Game
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between BKI and Ainsworth is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding BKI Investment 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 BKI Investment 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 BKI Investment 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 BKI Investment i.e., BKI Investment and Ainsworth Game go up and down completely randomly.
Pair Corralation between BKI Investment and Ainsworth Game
Assuming the 90 days trading horizon BKI Investment is expected to generate 0.22 times more return on investment than Ainsworth Game. However, BKI Investment is 4.6 times less risky than Ainsworth Game. It trades about -0.04 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.08 per unit of risk. If you would invest 173.00 in BKI Investment on August 26, 2024 and sell it today you would lose (1.00) from holding BKI Investment or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BKI Investment vs. Ainsworth Game Technology
Performance |
| Timeline |
| BKI Investment |
| Ainsworth Game Technology |
BKI Investment and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKI Investment and Ainsworth Game
The main advantage of trading using opposite BKI Investment and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKI Investment 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.| BKI Investment vs. Australian Foundation Investment | BKI Investment vs. GQG Partners DRC | BKI Investment vs. MFF Capital Investments | BKI Investment vs. Metrics Master Income |
| Ainsworth Game vs. Summit Resources Limited | Ainsworth Game vs. Ecofibre | Ainsworth Game vs. iShares Global Healthcare | Ainsworth Game vs. Adriatic Metals Plc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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