Correlation Between ANGLER GAMING and DMG Mori
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and DMG Mori 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 ANGLER GAMING and DMG Mori into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGLER GAMING PLC and DMG Mori Co, you can compare the effects of market volatilities on ANGLER GAMING and DMG Mori 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 ANGLER GAMING with a short position of DMG Mori. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and DMG Mori.
Diversification Opportunities for ANGLER GAMING and DMG Mori
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANGLER and DMG is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and DMG Mori Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DMG Mori and ANGLER GAMING 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 ANGLER GAMING PLC are associated (or correlated) with DMG Mori. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DMG Mori has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and DMG Mori go up and down completely randomly.
Pair Corralation between ANGLER GAMING and DMG Mori
Assuming the 90 days horizon ANGLER GAMING PLC is expected to under-perform the DMG Mori. In addition to that, ANGLER GAMING is 1.23 times more volatile than DMG Mori Co. It trades about -0.16 of its total potential returns per unit of risk. DMG Mori Co is currently generating about -0.05 per unit of volatility. If you would invest 1,720 in DMG Mori Co on September 5, 2024 and sell it today you would lose (80.00) from holding DMG Mori Co or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. DMG Mori Co
Performance |
| Timeline |
| ANGLER GAMING PLC |
| DMG Mori |
ANGLER GAMING and DMG Mori Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and DMG Mori
The main advantage of trading using opposite ANGLER GAMING and DMG Mori positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, DMG Mori 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 DMG Mori will offset losses from the drop in DMG Mori's long position.| ANGLER GAMING vs. MeVis Medical Solutions | ANGLER GAMING vs. ONWARD MEDICAL BV | ANGLER GAMING vs. CVR Medical Corp | ANGLER GAMING vs. AVITA Medical |
| DMG Mori vs. ANGLER GAMING PLC | DMG Mori vs. ULTRA CLEAN HLDGS | DMG Mori vs. OURGAME INTHOLDL 00005 | DMG Mori vs. DXC Technology Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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