Correlation Between Marine Products and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Marine Products 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 Marine Products and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Ainsworth Game Technology, you can compare the effects of market volatilities on Marine Products 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 Marine Products with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Ainsworth Game.
Diversification Opportunities for Marine Products and Ainsworth Game
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marine and Ainsworth is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products 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 Marine Products 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 Marine Products 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 Marine Products i.e., Marine Products and Ainsworth Game go up and down completely randomly.
Pair Corralation between Marine Products and Ainsworth Game
Considering the 90-day investment horizon Marine Products is expected to generate 1.0 times more return on investment than Ainsworth Game. However, Marine Products is 1.0 times more volatile than Ainsworth Game Technology. 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 930.00 in Marine Products on September 5, 2024 and sell it today you would earn a total of 50.00 from holding Marine Products or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. Ainsworth Game Technology
Performance |
| Timeline |
| Marine Products |
| Ainsworth Game Technology |
Marine Products and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Ainsworth Game
The main advantage of trading using opposite Marine Products and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products 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.| Marine Products vs. Thor Industries | Marine Products vs. EZGO Technologies | Marine Products vs. Polaris Industries | Marine Products vs. LCI Industries |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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