Correlation Between Ihuman and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Ihuman 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 Ihuman and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Ainsworth Game Technology, you can compare the effects of market volatilities on Ihuman 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 Ihuman with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Ainsworth Game.
Diversification Opportunities for Ihuman and Ainsworth Game
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ihuman and Ainsworth is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc 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 Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Ainsworth Game go up and down completely randomly.
Pair Corralation between Ihuman and Ainsworth Game
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the Ainsworth Game. In addition to that, Ihuman is 1.22 times more volatile than Ainsworth Game Technology. It trades about -0.02 of its total potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.02 per unit of volatility. If you would invest 69.00 in Ainsworth Game Technology on September 1, 2024 and sell it today you would lose (22.00) from holding Ainsworth Game Technology or give up 31.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Ainsworth Game Technology
Performance |
| Timeline |
| Ihuman Inc |
| Ainsworth Game Technology |
Ihuman and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Ainsworth Game
The main advantage of trading using opposite Ihuman and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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