Correlation Between Suncorp Group and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Suncorp Group 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 Suncorp Group and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suncorp Group Ltd and Ainsworth Game Technology, you can compare the effects of market volatilities on Suncorp Group 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 Suncorp Group with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suncorp Group and Ainsworth Game.
Diversification Opportunities for Suncorp Group and Ainsworth Game
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Suncorp and Ainsworth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Suncorp Group Ltd 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 Suncorp Group 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 Suncorp Group Ltd 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 Suncorp Group i.e., Suncorp Group and Ainsworth Game go up and down completely randomly.
Pair Corralation between Suncorp Group and Ainsworth Game
If you would invest 70.00 in Ainsworth Game Technology on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Ainsworth Game Technology or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suncorp Group Ltd vs. Ainsworth Game Technology
Performance |
| Timeline |
| Suncorp Group |
| Ainsworth Game Technology |
Suncorp Group and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suncorp Group and Ainsworth Game
The main advantage of trading using opposite Suncorp Group and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suncorp Group 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.| Suncorp Group vs. G8 Education | Suncorp Group vs. Pioneer Credit | Suncorp Group vs. Lendlease Group | Suncorp Group vs. Qbe Insurance Group |
| Ainsworth Game vs. Westpac Banking | Ainsworth Game vs. Champion Iron | Ainsworth Game vs. iShares Global Healthcare | Ainsworth Game vs. Peel Mining |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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