Correlation Between MACOM Technology and ANGLER GAMING
Can any of the company-specific risk be diversified away by investing in both MACOM Technology and ANGLER GAMING 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 MACOM Technology and ANGLER GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MACOM Technology Solutions and ANGLER GAMING PLC, you can compare the effects of market volatilities on MACOM Technology and ANGLER GAMING 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 MACOM Technology with a short position of ANGLER GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MACOM Technology and ANGLER GAMING.
Diversification Opportunities for MACOM Technology and ANGLER GAMING
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MACOM and ANGLER is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding MACOM Technology Solutions and ANGLER GAMING PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLER GAMING PLC and MACOM Technology 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 MACOM Technology Solutions are associated (or correlated) with ANGLER GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLER GAMING PLC has no effect on the direction of MACOM Technology i.e., MACOM Technology and ANGLER GAMING go up and down completely randomly.
Pair Corralation between MACOM Technology and ANGLER GAMING
Assuming the 90 days horizon MACOM Technology Solutions is expected to generate 0.44 times more return on investment than ANGLER GAMING. However, MACOM Technology Solutions is 2.25 times less risky than ANGLER GAMING. It trades about 0.08 of its potential returns per unit of risk. ANGLER GAMING PLC is currently generating about 0.03 per unit of risk. If you would invest 6,050 in MACOM Technology Solutions on October 13, 2024 and sell it today you would earn a total of 7,050 from holding MACOM Technology Solutions or generate 116.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
MACOM Technology Solutions vs. ANGLER GAMING PLC
Performance |
| Timeline |
| MACOM Technology Sol |
| ANGLER GAMING PLC |
MACOM Technology and ANGLER GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MACOM Technology and ANGLER GAMING
The main advantage of trading using opposite MACOM Technology and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MACOM Technology position performs unexpectedly, ANGLER GAMING 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 ANGLER GAMING will offset losses from the drop in ANGLER GAMING's long position.| MACOM Technology vs. FAST RETAIL ADR | MACOM Technology vs. JLF INVESTMENT | MACOM Technology vs. RETAIL FOOD GROUP | MACOM Technology vs. Costco Wholesale Corp |
| ANGLER GAMING vs. Wayside Technology Group | ANGLER GAMING vs. Take Two Interactive Software | ANGLER GAMING vs. PKSHA TECHNOLOGY INC | ANGLER GAMING vs. MACOM Technology Solutions |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |