Correlation Between 888 Holdings and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both 888 Holdings 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 888 Holdings and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 888 Holdings and Ainsworth Game Technology, you can compare the effects of market volatilities on 888 Holdings 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 888 Holdings with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of 888 Holdings and Ainsworth Game.
Diversification Opportunities for 888 Holdings and Ainsworth Game
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 888 and Ainsworth is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding 888 Holdings 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 888 Holdings 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 888 Holdings 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 888 Holdings i.e., 888 Holdings and Ainsworth Game go up and down completely randomly.
Pair Corralation between 888 Holdings and Ainsworth Game
Assuming the 90 days horizon 888 Holdings is expected to generate 1.37 times more return on investment than Ainsworth Game. However, 888 Holdings is 1.37 times more volatile than Ainsworth Game Technology. It trades about 0.03 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 66.00 in 888 Holdings on August 24, 2024 and sell it today you would earn a total of 14.00 from holding 888 Holdings or generate 21.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
888 Holdings vs. Ainsworth Game Technology
Performance |
| Timeline |
| 888 Holdings |
| Ainsworth Game Technology |
888 Holdings and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 888 Holdings and Ainsworth Game
The main advantage of trading using opposite 888 Holdings and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 888 Holdings 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.| 888 Holdings vs. Real Luck Group | 888 Holdings vs. Betmakers Technology Group | 888 Holdings vs. Jackpot Digital |
| Ainsworth Game vs. Real Luck Group | Ainsworth Game vs. Betmakers Technology Group | Ainsworth Game vs. Jackpot Digital |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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