Correlation Between WiseTech Global and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both WiseTech Global 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 WiseTech Global and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WiseTech Global Limited and Ainsworth Game Technology, you can compare the effects of market volatilities on WiseTech Global 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 WiseTech Global with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiseTech Global and Ainsworth Game.
Diversification Opportunities for WiseTech Global and Ainsworth Game
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between WiseTech and Ainsworth is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding WiseTech Global Limited 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 WiseTech Global 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 WiseTech Global Limited 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 WiseTech Global i.e., WiseTech Global and Ainsworth Game go up and down completely randomly.
Pair Corralation between WiseTech Global and Ainsworth Game
Assuming the 90 days trading horizon WiseTech Global Limited is expected to generate 0.67 times more return on investment than Ainsworth Game. However, WiseTech Global Limited is 1.49 times less risky than Ainsworth Game. It trades about 0.01 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.23 per unit of risk. If you would invest 12,389 in WiseTech Global Limited on November 3, 2024 and sell it today you would lose (8.00) from holding WiseTech Global Limited or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WiseTech Global Limited vs. Ainsworth Game Technology
Performance |
| Timeline |
| WiseTech Global |
| Ainsworth Game Technology |
WiseTech Global and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiseTech Global and Ainsworth Game
The main advantage of trading using opposite WiseTech Global and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiseTech Global 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.| WiseTech Global vs. Aneka Tambang Tbk | WiseTech Global vs. Rio Tinto | WiseTech Global vs. BHP Group Limited | WiseTech Global vs. Block Inc |
| Ainsworth Game vs. Super Retail Group | Ainsworth Game vs. Dalaroo Metals | Ainsworth Game vs. Dug Technology | Ainsworth Game vs. Computershare |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |