Correlation Between Ainsworth Game and GameStop Corp

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Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and GameStop Corp 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 GameStop Corp 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 GameStop Corp, you can compare the effects of market volatilities on Ainsworth Game and GameStop Corp 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 GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and GameStop Corp.

Diversification Opportunities for Ainsworth Game and GameStop Corp

0.62
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ainsworth and GameStop is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and GameStop Corp go up and down completely randomly.

Pair Corralation between Ainsworth Game and GameStop Corp

Assuming the 90 days horizon Ainsworth Game Technology is expected to generate 1.37 times more return on investment than GameStop Corp. However, Ainsworth Game is 1.37 times more volatile than GameStop Corp. It trades about 0.01 of its potential returns per unit of risk. GameStop Corp is currently generating about -0.02 per unit of risk. If you would invest  69.00  in Ainsworth Game Technology on September 10, 2025 and sell it today you would earn a total of  0.00  from holding Ainsworth Game Technology or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ainsworth Game Technology  vs.  GameStop Corp

 Performance 
       Timeline  
Ainsworth Game Technology 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ainsworth Game Technology are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.
GameStop Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days GameStop Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, GameStop Corp is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Ainsworth Game and GameStop Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ainsworth Game and GameStop Corp

The main advantage of trading using opposite Ainsworth Game and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp's long position.
The idea behind Ainsworth Game Technology and GameStop Corp 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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