Correlation Between Charter Hall and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Charter Hall 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 Charter Hall and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charter Hall Retail and Ainsworth Game Technology, you can compare the effects of market volatilities on Charter Hall 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 Charter Hall with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Hall and Ainsworth Game.
Diversification Opportunities for Charter Hall and Ainsworth Game
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Charter and Ainsworth is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Charter Hall Retail 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 Charter Hall 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 Charter Hall Retail 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 Charter Hall i.e., Charter Hall and Ainsworth Game go up and down completely randomly.
Pair Corralation between Charter Hall and Ainsworth Game
Assuming the 90 days trading horizon Charter Hall Retail is expected to generate 0.4 times more return on investment than Ainsworth Game. However, Charter Hall Retail is 2.52 times less risky than Ainsworth Game. It trades about 0.0 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.01 per unit of risk. If you would invest 346.00 in Charter Hall Retail on September 1, 2024 and sell it today you would lose (3.00) from holding Charter Hall Retail or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charter Hall Retail vs. Ainsworth Game Technology
Performance |
| Timeline |
| Charter Hall Retail |
| Ainsworth Game Technology |
Charter Hall and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charter Hall and Ainsworth Game
The main advantage of trading using opposite Charter Hall and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Hall 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.| Charter Hall vs. Leeuwin Metals | Charter Hall vs. Regis Healthcare | Charter Hall vs. DY6 Metals | Charter Hall vs. Oneview Healthcare PLC |
| Ainsworth Game vs. G8 Education | Ainsworth Game vs. Richmond Vanadium Technology | Ainsworth Game vs. Charter Hall Education | Ainsworth Game vs. Queste Communications |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |