Correlation Between BRP and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both BRP 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 BRP and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRP Inc and Ainsworth Game Technology, you can compare the effects of market volatilities on BRP 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 BRP with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRP and Ainsworth Game.
Diversification Opportunities for BRP and Ainsworth Game
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BRP and Ainsworth is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding BRP Inc 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 BRP 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 BRP Inc 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 BRP i.e., BRP and Ainsworth Game go up and down completely randomly.
Pair Corralation between BRP and Ainsworth Game
Given the investment horizon of 90 days BRP Inc is expected to generate 0.36 times more return on investment than Ainsworth Game. However, BRP Inc is 2.77 times less risky than Ainsworth Game. It trades about 0.1 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.14 per unit of risk. If you would invest 5,063 in BRP Inc on October 22, 2024 and sell it today you would earn a total of 136.00 from holding BRP Inc or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
BRP Inc vs. Ainsworth Game Technology
Performance |
| Timeline |
| BRP Inc |
| Ainsworth Game Technology |
BRP and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRP and Ainsworth Game
The main advantage of trading using opposite BRP and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRP 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.The idea behind BRP Inc and Ainsworth Game Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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