Correlation Between Sandon Capital and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Sandon Capital 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 Sandon Capital and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandon Capital Investments and Ainsworth Game Technology, you can compare the effects of market volatilities on Sandon Capital 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 Sandon Capital with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandon Capital and Ainsworth Game.
Diversification Opportunities for Sandon Capital and Ainsworth Game
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sandon and Ainsworth is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sandon Capital 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 Sandon Capital 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 Sandon Capital 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 Sandon Capital i.e., Sandon Capital and Ainsworth Game go up and down completely randomly.
Pair Corralation between Sandon Capital and Ainsworth Game
Assuming the 90 days trading horizon Sandon Capital is expected to generate 52.43 times less return on investment than Ainsworth Game. But when comparing it to its historical volatility, Sandon Capital Investments is 3.42 times less risky than Ainsworth Game. It trades about 0.0 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 73.00 in Ainsworth Game Technology on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Ainsworth Game Technology or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandon Capital Investments vs. Ainsworth Game Technology
Performance |
| Timeline |
| Sandon Capital Inves |
| Ainsworth Game Technology |
Sandon Capital and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandon Capital and Ainsworth Game
The main advantage of trading using opposite Sandon Capital and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandon Capital 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.| Sandon Capital vs. Alto Metals | Sandon Capital vs. Leeuwin Metals | Sandon Capital vs. Qbe Insurance Group | Sandon Capital vs. Computershare |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |