Correlation Between Garda Diversified and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Garda Diversified 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 Garda Diversified and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garda Diversified Ppty and Ainsworth Game Technology, you can compare the effects of market volatilities on Garda Diversified 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 Garda Diversified with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garda Diversified and Ainsworth Game.
Diversification Opportunities for Garda Diversified and Ainsworth Game
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Garda and Ainsworth is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Garda Diversified Ppty 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 Garda Diversified 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 Garda Diversified Ppty 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 Garda Diversified i.e., Garda Diversified and Ainsworth Game go up and down completely randomly.
Pair Corralation between Garda Diversified and Ainsworth Game
Assuming the 90 days trading horizon Garda Diversified Ppty is expected to generate 0.43 times more return on investment than Ainsworth Game. However, Garda Diversified Ppty is 2.3 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 -0.23 per unit of risk. If you would invest 119.00 in Garda Diversified Ppty on November 3, 2024 and sell it today you would lose (6.00) from holding Garda Diversified Ppty or give up 5.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garda Diversified Ppty vs. Ainsworth Game Technology
Performance |
| Timeline |
| Garda Diversified Ppty |
| Ainsworth Game Technology |
Garda Diversified and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garda Diversified and Ainsworth Game
The main advantage of trading using opposite Garda Diversified and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garda Diversified 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.| Garda Diversified vs. Charter Hall Retail | Garda Diversified vs. Cromwell Property Group | Garda Diversified vs. Australian Unity Office | Garda Diversified vs. Ecofibre |
| Ainsworth Game vs. Super Retail Group | Ainsworth Game vs. Dalaroo Metals | Ainsworth Game vs. Dug Technology | Ainsworth Game vs. Computershare |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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