Correlation Between ANGLER GAMING and Scientific Games
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and Scientific 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 Scientific 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 Scientific Games, you can compare the effects of market volatilities on ANGLER GAMING and Scientific 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 Scientific Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and Scientific Games.
Diversification Opportunities for ANGLER GAMING and Scientific Games
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANGLER and Scientific is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and Scientific Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scientific Games 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 Scientific Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scientific Games has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and Scientific Games go up and down completely randomly.
Pair Corralation between ANGLER GAMING and Scientific Games
Assuming the 90 days horizon ANGLER GAMING is expected to generate 4.36 times less return on investment than Scientific Games. In addition to that, ANGLER GAMING is 2.3 times more volatile than Scientific Games. It trades about 0.01 of its total potential returns per unit of risk. Scientific Games is currently generating about 0.06 per unit of volatility. If you would invest 6,000 in Scientific Games on August 28, 2024 and sell it today you would earn a total of 2,900 from holding Scientific Games or generate 48.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. Scientific Games
Performance |
| Timeline |
| ANGLER GAMING PLC |
| Scientific Games |
ANGLER GAMING and Scientific Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and Scientific Games
The main advantage of trading using opposite ANGLER GAMING and Scientific Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, Scientific 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 Scientific Games will offset losses from the drop in Scientific Games' long position.| ANGLER GAMING vs. Charter Communications | ANGLER GAMING vs. Rogers Communications | ANGLER GAMING vs. GALENA MINING LTD | ANGLER GAMING vs. MINCO SILVER |
| Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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