Correlation Between Singular Health and Ainsworth Game

Can any of the company-specific risk be diversified away by investing in both Singular Health 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 Singular Health and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Singular Health Group and Ainsworth Game Technology, you can compare the effects of market volatilities on Singular Health 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 Singular Health with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singular Health and Ainsworth Game.

Diversification Opportunities for Singular Health and Ainsworth Game

-0.26

Correlation Coefficient

Singular Health  Ainsworth Game

Very good diversification

The 3 months correlation between Singular and Ainsworth is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Singular Health 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 Singular Health 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 Singular Health 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 Singular Health i.e., Singular Health and Ainsworth Game go up and down completely randomly.

Pair Corralation between Singular Health and Ainsworth Game

Assuming the 90 days trading horizon Singular Health Group is expected to generate 1.68 times more return on investment than Ainsworth Game. However, Singular Health is 1.68 times more volatile than Ainsworth Game Technology. It trades about 0.15 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  8.15  in Singular Health Group on September 5, 2024 and sell it today you would earn a total of  3.85  from holding Singular Health Group or generate 47.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Singular Health Group  vs.  Ainsworth Game Technology

Singular Health Group

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Singular Health Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Singular Health unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ainsworth Game Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ainsworth Game Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's forward indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Singular Health and Ainsworth Game

The main advantage of trading using opposite Singular Health and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singular Health 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.

The idea behind Singular Health Group and Ainsworth Game Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .