Correlation Between Equitable Financial and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Equitable 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 Equitable 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 Equitable Financial Corp and Ainsworth Game Technology, you can compare the effects of market volatilities on Equitable 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 Equitable Financial with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equitable Financial and Ainsworth Game.
Diversification Opportunities for Equitable Financial and Ainsworth Game
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Equitable and Ainsworth is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Equitable Financial Corp 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 Equitable 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 Equitable Financial Corp 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 Equitable Financial i.e., Equitable Financial and Ainsworth Game go up and down completely randomly.
Pair Corralation between Equitable Financial and Ainsworth Game
If you would invest 71.00 in Ainsworth Game Technology on December 29, 2023 and sell it today you would earn a total of 12.00 from holding Ainsworth Game Technology or generate 16.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 0.54% |
Values | Daily Returns |
Equitable Financial Corp vs. Ainsworth Game Technology
Performance |
Timeline |
Equitable Financial Corp |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Ainsworth Game Technology |
Equitable Financial and Ainsworth Game Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Equitable Financial and Ainsworth Game
The main advantage of trading using opposite Equitable Financial and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equitable 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.Equitable Financial vs. Minerals Technologies | Equitable Financial vs. Avadel Pharmaceuticals PLC | Equitable Financial vs. Cumberland Pharmaceuticals | Equitable Financial vs. Talis Biomedical Corp |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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