Correlation Between Centuria Industrial and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Centuria Industrial 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 Centuria Industrial and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centuria Industrial Reit and Ainsworth Game Technology, you can compare the effects of market volatilities on Centuria Industrial 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 Centuria Industrial with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centuria Industrial and Ainsworth Game.
Diversification Opportunities for Centuria Industrial and Ainsworth Game
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centuria and Ainsworth is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Industrial Reit 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 Centuria Industrial 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 Centuria Industrial Reit 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 Centuria Industrial i.e., Centuria Industrial and Ainsworth Game go up and down completely randomly.
Pair Corralation between Centuria Industrial and Ainsworth Game
Assuming the 90 days trading horizon Centuria Industrial Reit is expected to under-perform the Ainsworth Game. But the stock apears to be less risky and, when comparing its historical volatility, Centuria Industrial Reit is 4.79 times less risky than Ainsworth Game. The stock trades about -0.24 of its potential returns per unit of risk. The Ainsworth Game Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 72.00 in Ainsworth Game Technology on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Ainsworth Game Technology or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centuria Industrial Reit vs. Ainsworth Game Technology
Performance |
| Timeline |
| Centuria Industrial Reit |
| Ainsworth Game Technology |
Centuria Industrial and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centuria Industrial and Ainsworth Game
The main advantage of trading using opposite Centuria Industrial and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuria Industrial 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.| Centuria Industrial vs. Scentre Group | Centuria Industrial vs. Charter Hall Retail | Centuria Industrial vs. Ecofibre | Centuria Industrial vs. iShares Global Healthcare |
| Ainsworth Game vs. Aneka Tambang Tbk | Ainsworth Game vs. Unibail Rodamco Westfield SE | Ainsworth Game vs. Macquarie Group | Ainsworth Game vs. Commonwealth Bank |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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