Correlation Between Equitable Financial and Ainsworth Game

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy0.54%
ValuesDaily Returns

Equitable Financial Corp  vs.  Ainsworth Game Technology

 Performance 
       Timeline  
Equitable Financial Corp 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Equitable Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Equitable Financial is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
Ainsworth Game Technology 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Ainsworth Game Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ainsworth Game is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.
The idea behind Equitable Financial Corp 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.
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.

Other Complementary Tools

ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios