Correlation Between Avis Budget and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Avis Budget 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 Avis Budget and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avis Budget Group and Ainsworth Game Technology, you can compare the effects of market volatilities on Avis Budget 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 Avis Budget with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avis Budget and Ainsworth Game.
Diversification Opportunities for Avis Budget and Ainsworth Game
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avis and Ainsworth is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Avis Budget 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 Avis Budget 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 Avis Budget 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 Avis Budget i.e., Avis Budget and Ainsworth Game go up and down completely randomly.
Pair Corralation between Avis Budget and Ainsworth Game
Considering the 90-day investment horizon Avis Budget Group is expected to generate 2.13 times more return on investment than Ainsworth Game. However, Avis Budget is 2.13 times more volatile than Ainsworth Game Technology. It trades about 0.26 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.12 per unit of risk. If you would invest 9,206 in Avis Budget Group on September 2, 2024 and sell it today you would earn a total of 1,701 from holding Avis Budget Group or generate 18.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avis Budget Group vs. Ainsworth Game Technology
Performance |
| Timeline |
| Avis Budget Group |
| Ainsworth Game Technology |
Avis Budget and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avis Budget and Ainsworth Game
The main advantage of trading using opposite Avis Budget and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avis Budget 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.| Avis Budget vs. Hertz Global Hldgs | Avis Budget vs. Ryder System | Avis Budget vs. HE Equipment Services | Avis Budget vs. United Rentals |
| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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