Correlation Between Ainsworth Game and Companhia Brasileira
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Companhia Brasileira 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 Companhia Brasileira 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 Companhia Brasileira De, you can compare the effects of market volatilities on Ainsworth Game and Companhia Brasileira 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 Companhia Brasileira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Companhia Brasileira.
Diversification Opportunities for Ainsworth Game and Companhia Brasileira
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ainsworth and Companhia is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Companhia Brasileira De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Companhia Brasileira 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 Companhia Brasileira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Companhia Brasileira has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Companhia Brasileira go up and down completely randomly.
Pair Corralation between Ainsworth Game and Companhia Brasileira
Assuming the 90 days horizon Ainsworth Game Technology is expected to generate 0.62 times more return on investment than Companhia Brasileira. However, Ainsworth Game Technology is 1.62 times less risky than Companhia Brasileira. It trades about 0.02 of its potential returns per unit of risk. Companhia Brasileira De is currently generating about 0.01 per unit of risk. If you would invest 68.00 in Ainsworth Game Technology on September 11, 2025 and sell it today you would earn a total of 1.00 from holding Ainsworth Game Technology or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Companhia Brasileira De
Performance |
| Timeline |
| Ainsworth Game Technology |
| Companhia Brasileira |
Ainsworth Game and Companhia Brasileira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Companhia Brasileira
The main advantage of trading using opposite Ainsworth Game and Companhia Brasileira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Companhia Brasileira 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 Companhia Brasileira will offset losses from the drop in Companhia Brasileira's long position.| Ainsworth Game vs. Gaming Realms plc | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. PointsBet Holdings Limited | Ainsworth Game vs. Tsutsumi Jewelry CoLtd |
| Companhia Brasileira vs. Medley Management | Companhia Brasileira vs. Safeplus International Holdings | Companhia Brasileira vs. Sysorex | Companhia Brasileira vs. Beneficial 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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