Correlation Between Cleanaway Waste and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Cleanaway Waste 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 Cleanaway Waste and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Waste Management and Ainsworth Game Technology, you can compare the effects of market volatilities on Cleanaway Waste 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 Cleanaway Waste with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway Waste and Ainsworth Game.
Diversification Opportunities for Cleanaway Waste and Ainsworth Game
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cleanaway and Ainsworth is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Waste Management 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 Cleanaway Waste 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 Cleanaway Waste Management 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 Cleanaway Waste i.e., Cleanaway Waste and Ainsworth Game go up and down completely randomly.
Pair Corralation between Cleanaway Waste and Ainsworth Game
Assuming the 90 days trading horizon Cleanaway Waste Management is expected to generate 0.22 times more return on investment than Ainsworth Game. However, Cleanaway Waste Management is 4.55 times less risky than Ainsworth Game. It trades about 0.22 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.15 per unit of risk. If you would invest 269.00 in Cleanaway Waste Management on October 28, 2024 and sell it today you would earn a total of 9.00 from holding Cleanaway Waste Management or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleanaway Waste Management vs. Ainsworth Game Technology
Performance |
| Timeline |
| Cleanaway Waste Mana |
| Ainsworth Game Technology |
Cleanaway Waste and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway Waste and Ainsworth Game
The main advantage of trading using opposite Cleanaway Waste and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway Waste 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.| Cleanaway Waste vs. Southern Hemisphere Mining | Cleanaway Waste vs. De Grey Mining | Cleanaway Waste vs. Globe Metals Mining | Cleanaway Waste vs. Duketon Mining |
| Ainsworth Game vs. MFF Capital Investments | Ainsworth Game vs. Lykos Metals | Ainsworth Game vs. FireFly Metals | Ainsworth Game vs. Insurance Australia 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 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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