Correlation Between Light Wonder and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Light Wonder 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 Light Wonder and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Light Wonder and Ainsworth Game Technology, you can compare the effects of market volatilities on Light Wonder 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 Light Wonder with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Light Wonder and Ainsworth Game.
Diversification Opportunities for Light Wonder and Ainsworth Game
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Light and Ainsworth is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Light Wonder 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 Light Wonder 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 Light Wonder 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 Light Wonder i.e., Light Wonder and Ainsworth Game go up and down completely randomly.
Pair Corralation between Light Wonder and Ainsworth Game
Considering the 90-day investment horizon Light Wonder is expected to generate 1.33 times more return on investment than Ainsworth Game. However, Light Wonder is 1.33 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 -0.09 per unit of risk. If you would invest 9,682 in Light Wonder on August 30, 2024 and sell it today you would earn a total of 26.00 from holding Light Wonder or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Light Wonder vs. Ainsworth Game Technology
Performance |
| Timeline |
| Light Wonder |
| Ainsworth Game Technology |
Light Wonder and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Light Wonder and Ainsworth Game
The main advantage of trading using opposite Light Wonder and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Light Wonder 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.| Light Wonder vs. Codere Online Corp | Light Wonder vs. Inspired Entertainment | Light Wonder vs. International Game Technology | Light Wonder vs. Accel Entertainment |
| Ainsworth Game vs. Light Wonder | Ainsworth Game vs. Nasdaq Inc | Ainsworth Game vs. Vertiv Holdings Co | Ainsworth Game vs. IONQ Inc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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