Correlation Between ANGLER GAMING and Nokia
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and Nokia 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 Nokia 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 Nokia, you can compare the effects of market volatilities on ANGLER GAMING and Nokia 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 Nokia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and Nokia.
Diversification Opportunities for ANGLER GAMING and Nokia
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANGLER and Nokia is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and Nokia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia 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 Nokia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and Nokia go up and down completely randomly.
Pair Corralation between ANGLER GAMING and Nokia
Assuming the 90 days horizon ANGLER GAMING PLC is expected to under-perform the Nokia. In addition to that, ANGLER GAMING is 3.02 times more volatile than Nokia. It trades about -0.22 of its total potential returns per unit of risk. Nokia is currently generating about -0.25 per unit of volatility. If you would invest 435.00 in Nokia on September 2, 2024 and sell it today you would lose (36.00) from holding Nokia or give up 8.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. Nokia
Performance |
| Timeline |
| ANGLER GAMING PLC |
| Nokia |
ANGLER GAMING and Nokia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and Nokia
The main advantage of trading using opposite ANGLER GAMING and Nokia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, Nokia 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 Nokia will offset losses from the drop in Nokia's long position.| ANGLER GAMING vs. Churchill Downs Incorporated | ANGLER GAMING vs. Scientific Games | ANGLER GAMING vs. Superior Plus Corp | ANGLER GAMING vs. Origin Agritech |
| Nokia vs. Tsingtao Brewery | Nokia vs. Merit Medical Systems | Nokia vs. SAFETY MEDICAL PROD | Nokia vs. Avanos Medical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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