Correlation Between Kip McGrath and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Kip McGrath 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 Kip McGrath and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kip McGrath Education and Ainsworth Game Technology, you can compare the effects of market volatilities on Kip McGrath 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 Kip McGrath with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Ainsworth Game.
Diversification Opportunities for Kip McGrath and Ainsworth Game
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kip and Ainsworth is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education 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 Kip McGrath 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 Kip McGrath Education 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 Kip McGrath i.e., Kip McGrath and Ainsworth Game go up and down completely randomly.
Pair Corralation between Kip McGrath and Ainsworth Game
Assuming the 90 days trading horizon Kip McGrath Education is expected to generate 1.1 times more return on investment than Ainsworth Game. However, Kip McGrath is 1.1 times more volatile than Ainsworth Game Technology. It trades about 0.02 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 47.00 in Kip McGrath Education on November 3, 2024 and sell it today you would lose (1.00) from holding Kip McGrath Education or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kip McGrath Education vs. Ainsworth Game Technology
Performance |
| Timeline |
| Kip McGrath Education |
| Ainsworth Game Technology |
Kip McGrath and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Ainsworth Game
The main advantage of trading using opposite Kip McGrath and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath 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.| Kip McGrath vs. MetalsGrove Mining | Kip McGrath vs. Black Rock Mining | Kip McGrath vs. Chalice Mining Limited | Kip McGrath vs. Collins Foods |
| Ainsworth Game vs. BlackWall Property Funds | Ainsworth Game vs. Genetic Technologies | Ainsworth Game vs. WiseTech Global Limited | Ainsworth Game vs. Mirrabooka Investments |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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