Correlation Between Hawkins and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Hawkins 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 Hawkins and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Ainsworth Game Technology, you can compare the effects of market volatilities on Hawkins 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 Hawkins with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Ainsworth Game.
Diversification Opportunities for Hawkins and Ainsworth Game
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hawkins and Ainsworth is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins 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 Hawkins 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 Hawkins 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 Hawkins i.e., Hawkins and Ainsworth Game go up and down completely randomly.
Pair Corralation between Hawkins and Ainsworth Game
Given the investment horizon of 90 days Hawkins is expected to generate 1.65 times more return on investment than Ainsworth Game. However, Hawkins is 1.65 times more volatile than Ainsworth Game Technology. It trades about 0.44 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.12 per unit of risk. If you would invest 10,625 in Hawkins on September 2, 2024 and sell it today you would earn a total of 2,826 from holding Hawkins or generate 26.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawkins vs. Ainsworth Game Technology
Performance |
| Timeline |
| Hawkins |
| Ainsworth Game Technology |
Hawkins and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and Ainsworth Game
The main advantage of trading using opposite Hawkins and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins 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.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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