Correlation Between Navigator Global and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Navigator Global 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 Navigator Global and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navigator Global Investments and Ainsworth Game Technology, you can compare the effects of market volatilities on Navigator Global 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 Navigator Global with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigator Global and Ainsworth Game.
Diversification Opportunities for Navigator Global and Ainsworth Game
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Navigator and Ainsworth is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Navigator Global 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 Navigator Global 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 Navigator Global 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 Navigator Global i.e., Navigator Global and Ainsworth Game go up and down completely randomly.
Pair Corralation between Navigator Global and Ainsworth Game
Assuming the 90 days trading horizon Navigator Global Investments is expected to generate 1.07 times more return on investment than Ainsworth Game. However, Navigator Global is 1.07 times more volatile than Ainsworth Game Technology. It trades about -0.07 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.23 per unit of risk. If you would invest 167.00 in Navigator Global Investments on November 3, 2024 and sell it today you would lose (8.00) from holding Navigator Global Investments or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Navigator Global Investments vs. Ainsworth Game Technology
Performance |
| Timeline |
| Navigator Global Inv |
| Ainsworth Game Technology |
Navigator Global and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navigator Global and Ainsworth Game
The main advantage of trading using opposite Navigator Global and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigator Global 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.| Navigator Global vs. Bank of Queensland | Navigator Global vs. Finexia Financial Group | Navigator Global vs. Insignia Financial | Navigator Global vs. Auswide Bank |
| Ainsworth Game vs. Super Retail Group | Ainsworth Game vs. Dalaroo Metals | Ainsworth Game vs. Dug Technology | Ainsworth Game vs. Computershare |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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