Correlation Between Intema Solutions and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Intema Solutions 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 Intema Solutions and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intema Solutions and Ainsworth Game Technology, you can compare the effects of market volatilities on Intema Solutions 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 Intema Solutions with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intema Solutions and Ainsworth Game.
Diversification Opportunities for Intema Solutions and Ainsworth Game
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intema and Ainsworth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intema Solutions 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 Intema Solutions 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 Intema Solutions 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 Intema Solutions i.e., Intema Solutions and Ainsworth Game go up and down completely randomly.
Pair Corralation between Intema Solutions and Ainsworth Game
Assuming the 90 days horizon Intema Solutions is expected to generate 12.94 times more return on investment than Ainsworth Game. However, Intema Solutions is 12.94 times more volatile than Ainsworth Game Technology. It trades about 0.05 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.01 per unit of risk. If you would invest 5.95 in Intema Solutions on August 31, 2024 and sell it today you would lose (5.73) from holding Intema Solutions or give up 96.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intema Solutions vs. Ainsworth Game Technology
Performance |
| Timeline |
| Intema Solutions |
| Ainsworth Game Technology |
Intema Solutions and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intema Solutions and Ainsworth Game
The main advantage of trading using opposite Intema Solutions and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intema Solutions 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.The idea behind Intema Solutions and Ainsworth Game Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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