Correlation Between SOUTHERN and Ainsworth Game
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By analyzing existing cross correlation between SOUTHERN CALIF EDISON and Ainsworth Game Technology, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Ainsworth Game.
Diversification Opportunities for SOUTHERN and Ainsworth Game
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SOUTHERN and Ainsworth is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF EDISON 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 SOUTHERN 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 SOUTHERN CALIF EDISON 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 SOUTHERN i.e., SOUTHERN and Ainsworth Game go up and down completely randomly.
Pair Corralation between SOUTHERN and Ainsworth Game
Assuming the 90 days trading horizon SOUTHERN CALIF EDISON is expected to generate 0.32 times more return on investment than Ainsworth Game. However, SOUTHERN CALIF EDISON is 3.11 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 -0.01 per unit of risk. If you would invest 8,429 in SOUTHERN CALIF EDISON on September 5, 2024 and sell it today you would lose (246.00) from holding SOUTHERN CALIF EDISON or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.74% |
| Values | Daily Returns |
SOUTHERN CALIF EDISON vs. Ainsworth Game Technology
Performance |
| Timeline |
| SOUTHERN CALIF EDISON |
| Ainsworth Game Technology |
SOUTHERN and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Ainsworth Game
The main advantage of trading using opposite SOUTHERN and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. Ainsworth Game Technology | SOUTHERN vs. Xponential Fitness | SOUTHERN vs. Wicket Gaming AB | SOUTHERN vs. Marine Products |
| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
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.
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