Correlation Between FactSet Research and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both FactSet Research 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 FactSet Research and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FactSet Research Systems and Ainsworth Game Technology, you can compare the effects of market volatilities on FactSet Research 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 FactSet Research with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and Ainsworth Game.
Diversification Opportunities for FactSet Research and Ainsworth Game
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FactSet and Ainsworth is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems 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 FactSet Research 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 FactSet Research Systems 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 FactSet Research i.e., FactSet Research and Ainsworth Game go up and down completely randomly.
Pair Corralation between FactSet Research and Ainsworth Game
Considering the 90-day investment horizon FactSet Research Systems is expected to under-perform the Ainsworth Game. But the stock apears to be less risky and, when comparing its historical volatility, FactSet Research Systems is 5.2 times less risky than Ainsworth Game. The stock trades about -0.15 of its potential returns per unit of risk. The Ainsworth Game Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 46.00 in Ainsworth Game Technology on November 28, 2024 and sell it today you would earn a total of 5.00 from holding Ainsworth Game Technology or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FactSet Research Systems vs. Ainsworth Game Technology
Performance |
| Timeline |
| FactSet Research Systems |
| Ainsworth Game Technology |
FactSet Research and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FactSet Research and Ainsworth Game
The main advantage of trading using opposite FactSet Research and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research 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.| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
| 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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