Correlation Between Credit Clear and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Credit Clear 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 Credit Clear and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Clear and Ainsworth Game Technology, you can compare the effects of market volatilities on Credit Clear 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 Credit Clear with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Clear and Ainsworth Game.
Diversification Opportunities for Credit Clear and Ainsworth Game
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Credit and Ainsworth is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Credit Clear 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 Credit Clear 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 Credit Clear 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 Credit Clear i.e., Credit Clear and Ainsworth Game go up and down completely randomly.
Pair Corralation between Credit Clear and Ainsworth Game
Assuming the 90 days trading horizon Credit Clear is expected to generate 1.08 times more return on investment than Ainsworth Game. However, Credit Clear is 1.08 times more volatile than Ainsworth Game Technology. It trades about 0.06 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 30.00 in Credit Clear on September 25, 2024 and sell it today you would earn a total of 3.00 from holding Credit Clear or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Credit Clear vs. Ainsworth Game Technology
Performance |
Timeline |
Credit Clear |
Ainsworth Game Technology |
Credit Clear and Ainsworth Game Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Credit Clear and Ainsworth Game
The main advantage of trading using opposite Credit Clear and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Clear 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.Credit Clear vs. Ecofibre | Credit Clear vs. iShares Global Healthcare | Credit Clear vs. Adriatic Metals Plc | Credit Clear vs. Australian Dairy Farms |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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