Correlation Between ANGLER GAMING and Atrium Ljungberg
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and Atrium Ljungberg 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 Atrium Ljungberg 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 Atrium Ljungberg AB, you can compare the effects of market volatilities on ANGLER GAMING and Atrium Ljungberg 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 Atrium Ljungberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and Atrium Ljungberg.
Diversification Opportunities for ANGLER GAMING and Atrium Ljungberg
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANGLER and Atrium is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg 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 Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and Atrium Ljungberg go up and down completely randomly.
Pair Corralation between ANGLER GAMING and Atrium Ljungberg
Assuming the 90 days horizon ANGLER GAMING PLC is expected to under-perform the Atrium Ljungberg. In addition to that, ANGLER GAMING is 2.2 times more volatile than Atrium Ljungberg AB. It trades about -0.16 of its total potential returns per unit of risk. Atrium Ljungberg AB is currently generating about -0.1 per unit of volatility. If you would invest 1,812 in Atrium Ljungberg AB on September 5, 2024 and sell it today you would lose (82.00) from holding Atrium Ljungberg AB or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. Atrium Ljungberg AB
Performance |
| Timeline |
| ANGLER GAMING PLC |
| Atrium Ljungberg |
ANGLER GAMING and Atrium Ljungberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and Atrium Ljungberg
The main advantage of trading using opposite ANGLER GAMING and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, Atrium Ljungberg 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 Atrium Ljungberg will offset losses from the drop in Atrium Ljungberg'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 |
| Atrium Ljungberg vs. China Resources Land | Atrium Ljungberg vs. RADIANCE HLDGS GRPHD 01 | Atrium Ljungberg vs. CIFI Holdings Co | Atrium Ljungberg vs. REDSUN PROPERTIES GROUP |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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