Correlation Between ANGLER GAMING and Bank of America
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and Bank of America 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 Bank of America 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 Verizon Communications, you can compare the effects of market volatilities on ANGLER GAMING and Bank of America 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 Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and Bank of America.
Diversification Opportunities for ANGLER GAMING and Bank of America
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANGLER and Bank is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and Verizon Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verizon Communications 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 Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verizon Communications has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and Bank of America go up and down completely randomly.
Pair Corralation between ANGLER GAMING and Bank of America
Assuming the 90 days horizon ANGLER GAMING is expected to generate 1.52 times less return on investment than Bank of America. In addition to that, ANGLER GAMING is 4.0 times more volatile than Verizon Communications. It trades about 0.01 of its total potential returns per unit of risk. Verizon Communications is currently generating about 0.08 per unit of volatility. If you would invest 3,196 in Verizon Communications on September 14, 2024 and sell it today you would earn a total of 809.00 from holding Verizon Communications or generate 25.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. Verizon Communications
Performance |
| Timeline |
| ANGLER GAMING PLC |
| Verizon Communications |
ANGLER GAMING and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and Bank of America
The main advantage of trading using opposite ANGLER GAMING and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.| ANGLER GAMING vs. CDL INVESTMENT | ANGLER GAMING vs. Strategic Investments AS | ANGLER GAMING vs. Japan Asia Investment | ANGLER GAMING vs. KENNAMETAL INC |
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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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