Correlation Between Truscott Mining and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Truscott Mining 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 Truscott Mining and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truscott Mining Corp and Ainsworth Game Technology, you can compare the effects of market volatilities on Truscott Mining 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 Truscott Mining with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truscott Mining and Ainsworth Game.
Diversification Opportunities for Truscott Mining and Ainsworth Game
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Truscott and Ainsworth is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Truscott Mining Corp 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 Truscott Mining 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 Truscott Mining Corp 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 Truscott Mining i.e., Truscott Mining and Ainsworth Game go up and down completely randomly.
Pair Corralation between Truscott Mining and Ainsworth Game
Assuming the 90 days trading horizon Truscott Mining Corp is expected to generate 0.99 times more return on investment than Ainsworth Game. However, Truscott Mining Corp is 1.01 times less risky than Ainsworth Game. It trades about 0.07 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.06 per unit of risk. If you would invest 5.00 in Truscott Mining Corp on November 3, 2024 and sell it today you would earn a total of 2.80 from holding Truscott Mining Corp or generate 56.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Truscott Mining Corp vs. Ainsworth Game Technology
Performance |
| Timeline |
| Truscott Mining Corp |
| Ainsworth Game Technology |
Truscott Mining and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truscott Mining and Ainsworth Game
The main advantage of trading using opposite Truscott Mining and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truscott Mining 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.| Truscott Mining vs. Perseus Mining | Truscott Mining vs. DMC Mining | Truscott Mining vs. Peel Mining | Truscott Mining vs. Pinnacle Investment Management |
| Ainsworth Game vs. BlackWall Property Funds | Ainsworth Game vs. Genetic Technologies | Ainsworth Game vs. WiseTech Global Limited | Ainsworth Game vs. Mirrabooka Investments |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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