Correlation Between ANGLER GAMING and GAMING FAC
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and GAMING FAC 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 GAMING FAC 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 GAMING FAC SA, you can compare the effects of market volatilities on ANGLER GAMING and GAMING FAC 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 GAMING FAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and GAMING FAC.
Diversification Opportunities for ANGLER GAMING and GAMING FAC
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANGLER and GAMING is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and GAMING FAC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMING FAC SA 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 GAMING FAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMING FAC SA has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and GAMING FAC go up and down completely randomly.
Pair Corralation between ANGLER GAMING and GAMING FAC
Assuming the 90 days horizon ANGLER GAMING PLC is expected to generate 1.67 times more return on investment than GAMING FAC. However, ANGLER GAMING is 1.67 times more volatile than GAMING FAC SA. It trades about 0.01 of its potential returns per unit of risk. GAMING FAC SA is currently generating about -0.06 per unit of risk. If you would invest 32.00 in ANGLER GAMING PLC on October 1, 2024 and sell it today you would lose (5.00) from holding ANGLER GAMING PLC or give up 15.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. GAMING FAC SA
Performance |
| Timeline |
| ANGLER GAMING PLC |
| GAMING FAC SA |
ANGLER GAMING and GAMING FAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and GAMING FAC
The main advantage of trading using opposite ANGLER GAMING and GAMING FAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, GAMING FAC 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 GAMING FAC will offset losses from the drop in GAMING FAC's long position.| ANGLER GAMING vs. Evolution AB | ANGLER GAMING vs. Churchill Downs Incorporated | ANGLER GAMING vs. La Franaise des | ANGLER GAMING vs. Scientific Games |
| GAMING FAC vs. Sekisui Chemical Co | GAMING FAC vs. DICKS Sporting Goods | GAMING FAC vs. Siamgas And Petrochemicals | GAMING FAC vs. KENEDIX OFFICE INV |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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