Correlation Between Ainsworth Game and NeogamesSA
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and NeogamesSA 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 Ainsworth Game and NeogamesSA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainsworth Game Technology and NeogamesSA, you can compare the effects of market volatilities on Ainsworth Game and NeogamesSA 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 Ainsworth Game with a short position of NeogamesSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and NeogamesSA.
Diversification Opportunities for Ainsworth Game and NeogamesSA
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ainsworth and NeogamesSA is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and NeogamesSA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeogamesSA and Ainsworth Game 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 Ainsworth Game Technology are associated (or correlated) with NeogamesSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeogamesSA has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and NeogamesSA go up and down completely randomly.
Pair Corralation between Ainsworth Game and NeogamesSA
Assuming the 90 days horizon Ainsworth Game is expected to generate 3.98 times less return on investment than NeogamesSA. But when comparing it to its historical volatility, Ainsworth Game Technology is 1.62 times less risky than NeogamesSA. It trades about 0.02 of its potential returns per unit of risk. NeogamesSA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,281 in NeogamesSA on January 29, 2024 and sell it today you would earn a total of 1,664 from holding NeogamesSA or generate 129.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 99.8% |
Values | Daily Returns |
Ainsworth Game Technology vs. NeogamesSA
Performance |
Timeline |
Ainsworth Game Technology |
NeogamesSA |
Ainsworth Game and NeogamesSA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ainsworth Game and NeogamesSA
The main advantage of trading using opposite Ainsworth Game and NeogamesSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, NeogamesSA 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 NeogamesSA will offset losses from the drop in NeogamesSA's long position.Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Betmakers Technology Group | Ainsworth Game vs. Jackpot Digital |
NeogamesSA vs. Accel Entertainment | NeogamesSA vs. PlayAGS | NeogamesSA vs. International Game Technology | NeogamesSA vs. Everi Holdings |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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