Correlation Between Perpetual Credit and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Perpetual Credit 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 Perpetual Credit and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perpetual Credit Income and Ainsworth Game Technology, you can compare the effects of market volatilities on Perpetual Credit 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 Perpetual Credit with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perpetual Credit and Ainsworth Game.
Diversification Opportunities for Perpetual Credit and Ainsworth Game
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Perpetual and Ainsworth is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Perpetual Credit Income 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 Perpetual Credit 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 Perpetual Credit Income 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 Perpetual Credit i.e., Perpetual Credit and Ainsworth Game go up and down completely randomly.
Pair Corralation between Perpetual Credit and Ainsworth Game
Assuming the 90 days trading horizon Perpetual Credit Income is expected to generate 0.38 times more return on investment than Ainsworth Game. However, Perpetual Credit Income is 2.66 times less risky than Ainsworth Game. It trades about 0.1 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.04 per unit of risk. If you would invest 103.00 in Perpetual Credit Income on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Perpetual Credit Income or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perpetual Credit Income vs. Ainsworth Game Technology
Performance |
| Timeline |
| Perpetual Credit Income |
| Ainsworth Game Technology |
Perpetual Credit and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perpetual Credit and Ainsworth Game
The main advantage of trading using opposite Perpetual Credit and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perpetual Credit 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.| Perpetual Credit vs. ABACUS STORAGE KING | Perpetual Credit vs. Midway | Perpetual Credit vs. Aristocrat Leisure | Perpetual Credit vs. Imricor Medical Systems |
| Ainsworth Game vs. G8 Education | Ainsworth Game vs. Richmond Vanadium Technology | Ainsworth Game vs. Charter Hall Education | Ainsworth Game vs. Queste Communications |
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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