Correlation Between MFF Capital and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both MFF Capital 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 MFF Capital and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFF Capital Investments and Ainsworth Game Technology, you can compare the effects of market volatilities on MFF Capital 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 MFF Capital with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFF Capital and Ainsworth Game.
Diversification Opportunities for MFF Capital and Ainsworth Game
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFF and Ainsworth is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding MFF Capital Investments 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 MFF Capital 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 MFF Capital Investments 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 MFF Capital i.e., MFF Capital and Ainsworth Game go up and down completely randomly.
Pair Corralation between MFF Capital and Ainsworth Game
Assuming the 90 days trading horizon MFF Capital Investments is expected to generate 0.32 times more return on investment than Ainsworth Game. However, MFF Capital Investments is 3.16 times less risky than Ainsworth Game. It trades about 0.14 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 239.00 in MFF Capital Investments on November 7, 2024 and sell it today you would earn a total of 239.00 from holding MFF Capital Investments or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFF Capital Investments vs. Ainsworth Game Technology
Performance |
| Timeline |
| MFF Capital Investments |
| Ainsworth Game Technology |
MFF Capital and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFF Capital and Ainsworth Game
The main advantage of trading using opposite MFF Capital and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFF Capital 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.| MFF Capital vs. Collins Foods | MFF Capital vs. Qbe Insurance Group | MFF Capital vs. Macquarie Bank Limited | MFF Capital vs. Dexus Convenience Retail |
| Ainsworth Game vs. Audio Pixels Holdings | Ainsworth Game vs. Iodm | Ainsworth Game vs. Nsx | Ainsworth Game vs. TTG Fintech |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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