Correlation Between Regis Healthcare and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare 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 Regis Healthcare and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and Ainsworth Game Technology, you can compare the effects of market volatilities on Regis Healthcare 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 Regis Healthcare with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Ainsworth Game.
Diversification Opportunities for Regis Healthcare and Ainsworth Game
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regis and Ainsworth is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare 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 Regis Healthcare 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 Regis Healthcare 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 Regis Healthcare i.e., Regis Healthcare and Ainsworth Game go up and down completely randomly.
Pair Corralation between Regis Healthcare and Ainsworth Game
Assuming the 90 days trading horizon Regis Healthcare is expected to under-perform the Ainsworth Game. But the stock apears to be less risky and, when comparing its historical volatility, Regis Healthcare is 1.4 times less risky than Ainsworth Game. The stock trades about -0.03 of its potential returns per unit of risk. The Ainsworth Game Technology is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 75.00 in Ainsworth Game Technology on October 30, 2024 and sell it today you would lose (3.00) from holding Ainsworth Game Technology or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regis Healthcare vs. Ainsworth Game Technology
Performance |
| Timeline |
| Regis Healthcare |
| Ainsworth Game Technology |
Regis Healthcare and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and Ainsworth Game
The main advantage of trading using opposite Regis Healthcare and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare 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.| Regis Healthcare vs. Technology One | Regis Healthcare vs. DY6 Metals | Regis Healthcare vs. Autosports Group | Regis Healthcare vs. 29Metals |
| Ainsworth Game vs. Global Health | Ainsworth Game vs. Cleanaway Waste Management | Ainsworth Game vs. Charter Hall Retail | Ainsworth Game vs. Epsilon Healthcare |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |