Correlation Between ANGLER GAMING and CI GAMES
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and CI GAMES 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 CI GAMES 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 CI GAMES SA, you can compare the effects of market volatilities on ANGLER GAMING and CI GAMES 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 CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and CI GAMES.
Diversification Opportunities for ANGLER GAMING and CI GAMES
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANGLER and CI7 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and CI GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI GAMES 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 CI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI GAMES SA has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and CI GAMES go up and down completely randomly.
Pair Corralation between ANGLER GAMING and CI GAMES
Assuming the 90 days horizon ANGLER GAMING PLC is expected to generate 1.13 times more return on investment than CI GAMES. However, ANGLER GAMING is 1.13 times more volatile than CI GAMES SA. It trades about 0.02 of its potential returns per unit of risk. CI GAMES SA is currently generating about -0.02 per unit of risk. If you would invest 32.00 in ANGLER GAMING PLC on September 3, 2024 and sell it today you would lose (3.00) from holding ANGLER GAMING PLC or give up 9.38% 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. CI GAMES SA
Performance |
| Timeline |
| ANGLER GAMING PLC |
| CI GAMES SA |
ANGLER GAMING and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and CI GAMES
The main advantage of trading using opposite ANGLER GAMING and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, CI GAMES 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 CI GAMES will offset losses from the drop in CI GAMES's long position.| ANGLER GAMING vs. G8 EDUCATION | ANGLER GAMING vs. STRAYER EDUCATION | ANGLER GAMING vs. Entravision Communications | ANGLER GAMING vs. Spirent Communications plc |
| CI GAMES vs. Nintendo Co | CI GAMES vs. Nintendo Co | CI GAMES vs. Sea Limited | CI GAMES vs. Take Two Interactive Software |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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