Correlation Between ANGLER GAMING and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and AM EAGLE 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 AM EAGLE 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 AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on ANGLER GAMING and AM EAGLE 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 AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and AM EAGLE.
Diversification Opportunities for ANGLER GAMING and AM EAGLE
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANGLER and AFG is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and AM EAGLE go up and down completely randomly.
Pair Corralation between ANGLER GAMING and AM EAGLE
Assuming the 90 days horizon ANGLER GAMING PLC is expected to under-perform the AM EAGLE. In addition to that, ANGLER GAMING is 1.12 times more volatile than AM EAGLE OUTFITTERS. It trades about -0.11 of its total potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about 0.01 per unit of volatility. If you would invest 1,680 in AM EAGLE OUTFITTERS on September 13, 2024 and sell it today you would lose (10.00) from holding AM EAGLE OUTFITTERS or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| ANGLER GAMING PLC |
| AM EAGLE OUTFITTERS |
ANGLER GAMING and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and AM EAGLE
The main advantage of trading using opposite ANGLER GAMING and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE'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 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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