Correlation Between Nasdaq and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Nasdaq 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 Nasdaq and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Ainsworth Game Technology, you can compare the effects of market volatilities on Nasdaq 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 Nasdaq with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Ainsworth Game.
Diversification Opportunities for Nasdaq and Ainsworth Game
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq and Ainsworth is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc 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 Nasdaq 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 Nasdaq Inc 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 Nasdaq i.e., Nasdaq and Ainsworth Game go up and down completely randomly.
Pair Corralation between Nasdaq and Ainsworth Game
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 0.53 times more return on investment than Ainsworth Game. However, Nasdaq Inc is 1.88 times less risky than Ainsworth Game. It trades about 0.24 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 5,831 in Nasdaq Inc on September 1, 2024 and sell it today you would earn a total of 2,468 from holding Nasdaq Inc or generate 42.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq Inc vs. Ainsworth Game Technology
Performance |
| Timeline |
| Nasdaq Inc |
| Ainsworth Game Technology |
Nasdaq and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Ainsworth Game
The main advantage of trading using opposite Nasdaq and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 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.The idea behind Nasdaq Inc and Ainsworth Game Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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