Correlation Between Wt Financial and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Wt Financial 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 Wt Financial and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wt Financial Group and Ainsworth Game Technology, you can compare the effects of market volatilities on Wt Financial 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 Wt Financial with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wt Financial and Ainsworth Game.
Diversification Opportunities for Wt Financial and Ainsworth Game
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WTL and Ainsworth is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Wt Financial Group 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 Wt Financial 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 Wt Financial Group 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 Wt Financial i.e., Wt Financial and Ainsworth Game go up and down completely randomly.
Pair Corralation between Wt Financial and Ainsworth Game
Assuming the 90 days trading horizon Wt Financial Group is expected to under-perform the Ainsworth Game. In addition to that, Wt Financial is 1.01 times more volatile than Ainsworth Game Technology. It trades about -0.09 of its total potential returns per unit of risk. Ainsworth Game Technology is currently generating about 0.06 per unit of volatility. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wt Financial Group vs. Ainsworth Game Technology
Performance |
| Timeline |
| Wt Financial Group |
| Ainsworth Game Technology |
Wt Financial and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wt Financial and Ainsworth Game
The main advantage of trading using opposite Wt Financial and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wt Financial 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.| Wt Financial vs. WA1 Resources | Wt Financial vs. Predictive Discovery | Wt Financial vs. Cooper Metals | Wt Financial vs. OD6 Metals |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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