Correlation Between Global Engine and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Global Engine 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 Global Engine and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Engine Group and Ainsworth Game Technology, you can compare the effects of market volatilities on Global Engine 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 Global Engine with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Engine and Ainsworth Game.
Diversification Opportunities for Global Engine and Ainsworth Game
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Ainsworth is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Global Engine Group 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 Global Engine 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 Global Engine Group 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 Global Engine i.e., Global Engine and Ainsworth Game go up and down completely randomly.
Pair Corralation between Global Engine and Ainsworth Game
Considering the 90-day investment horizon Global Engine Group is expected to generate 3.3 times more return on investment than Ainsworth Game. However, Global Engine is 3.3 times more volatile than Ainsworth Game Technology. It trades about -0.01 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.06 per unit of risk. If you would invest 418.00 in Global Engine Group on September 1, 2024 and sell it today you would lose (60.00) from holding Global Engine Group or give up 14.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.68% |
| Values | Daily Returns |
Global Engine Group vs. Ainsworth Game Technology
Performance |
| Timeline |
| Global Engine Group |
| Ainsworth Game Technology |
Global Engine and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Engine and Ainsworth Game
The main advantage of trading using opposite Global Engine and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Engine 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.| Global Engine vs. Fiserv, | Global Engine vs. Gartner | Global Engine vs. Kyndryl Holdings | Global Engine vs. Digimarc |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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