Correlation Between Macquarie and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Macquarie 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 Macquarie and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Group and Ainsworth Game Technology, you can compare the effects of market volatilities on Macquarie 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 Macquarie with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie and Ainsworth Game.
Diversification Opportunities for Macquarie and Ainsworth Game
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Macquarie and Ainsworth is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group 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 Macquarie 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 Macquarie Group 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 Macquarie i.e., Macquarie and Ainsworth Game go up and down completely randomly.
Pair Corralation between Macquarie and Ainsworth Game
Assuming the 90 days trading horizon Macquarie Group is expected to under-perform the Ainsworth Game. But the stock apears to be less risky and, when comparing its historical volatility, Macquarie Group is 3.91 times less risky than Ainsworth Game. The stock trades about -0.07 of its potential returns per unit of risk. The Ainsworth Game Technology is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Ainsworth Game Technology on November 29, 2024 and sell it today you would earn a total of 14.00 from holding Ainsworth Game Technology or generate 19.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Group vs. Ainsworth Game Technology
Performance |
| Timeline |
| Macquarie Group |
| Ainsworth Game Technology |
Macquarie and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie and Ainsworth Game
The main advantage of trading using opposite Macquarie and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie 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.| Macquarie vs. Chalice Mining Limited | Macquarie vs. Sports Entertainment Group | Macquarie vs. Iron Road | Macquarie vs. Maggie Beer Holdings |
| Ainsworth Game vs. IRIS Metals | Ainsworth Game vs. Olympio Metals | Ainsworth Game vs. Centrex Metals | Ainsworth Game vs. Super Retail Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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