Correlation Between ANGLER GAMING and Scandinavian Tobacco
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and Scandinavian Tobacco 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 Scandinavian Tobacco 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 Scandinavian Tobacco Group, you can compare the effects of market volatilities on ANGLER GAMING and Scandinavian Tobacco 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 Scandinavian Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and Scandinavian Tobacco.
Diversification Opportunities for ANGLER GAMING and Scandinavian Tobacco
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANGLER and Scandinavian is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and Scandinavian Tobacco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Tobacco 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 Scandinavian Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Tobacco has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and Scandinavian Tobacco go up and down completely randomly.
Pair Corralation between ANGLER GAMING and Scandinavian Tobacco
Assuming the 90 days horizon ANGLER GAMING PLC is expected to under-perform the Scandinavian Tobacco. In addition to that, ANGLER GAMING is 1.66 times more volatile than Scandinavian Tobacco Group. It trades about -0.11 of its total potential returns per unit of risk. Scandinavian Tobacco Group is currently generating about -0.11 per unit of volatility. If you would invest 1,366 in Scandinavian Tobacco Group on September 13, 2024 and sell it today you would lose (96.00) from holding Scandinavian Tobacco Group or give up 7.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. Scandinavian Tobacco Group
Performance |
| Timeline |
| ANGLER GAMING PLC |
| Scandinavian Tobacco |
ANGLER GAMING and Scandinavian Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and Scandinavian Tobacco
The main advantage of trading using opposite ANGLER GAMING and Scandinavian Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, Scandinavian Tobacco 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 Scandinavian Tobacco will offset losses from the drop in Scandinavian Tobacco's long position.| ANGLER GAMING vs. Scientific Games | ANGLER GAMING vs. International Game Technology | ANGLER GAMING vs. Superior Plus Corp | ANGLER GAMING vs. SIVERS SEMICONDUCTORS AB |
| Scandinavian Tobacco vs. HomeToGo SE | Scandinavian Tobacco vs. Gruppo Mutuionline SpA | Scandinavian Tobacco vs. SIEM OFFSHORE NEW | Scandinavian Tobacco vs. Taylor Morrison Home |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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