Correlation Between ANGLER GAMING and PENN NATL
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and PENN NATL 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 PENN NATL 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 PENN NATL GAMING, you can compare the effects of market volatilities on ANGLER GAMING and PENN NATL 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 PENN NATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and PENN NATL.
Diversification Opportunities for ANGLER GAMING and PENN NATL
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANGLER and PENN is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and PENN NATL GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN NATL GAMING 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 PENN NATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN NATL GAMING has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and PENN NATL go up and down completely randomly.
Pair Corralation between ANGLER GAMING and PENN NATL
Assuming the 90 days horizon ANGLER GAMING PLC is expected to generate 1.45 times more return on investment than PENN NATL. However, ANGLER GAMING is 1.45 times more volatile than PENN NATL GAMING. It trades about 0.02 of its potential returns per unit of risk. PENN NATL GAMING is currently generating about 0.01 per unit of risk. If you would invest 30.00 in ANGLER GAMING PLC on September 21, 2024 and sell it today you would lose (3.00) from holding ANGLER GAMING PLC or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. PENN NATL GAMING
Performance |
| Timeline |
| ANGLER GAMING PLC |
| PENN NATL GAMING |
ANGLER GAMING and PENN NATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and PENN NATL
The main advantage of trading using opposite ANGLER GAMING and PENN NATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, PENN NATL 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 PENN NATL will offset losses from the drop in PENN NATL's long position.| ANGLER GAMING vs. Flutter Entertainment PLC | ANGLER GAMING vs. Evolution AB | ANGLER GAMING vs. Churchill Downs Incorporated | ANGLER GAMING vs. Churchill Downs Incorporated |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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