Correlation Between LIFENET INSURANCE and ANGLER GAMING
Can any of the company-specific risk be diversified away by investing in both LIFENET INSURANCE 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 LIFENET INSURANCE and ANGLER GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LIFENET INSURANCE CO and ANGLER GAMING PLC, you can compare the effects of market volatilities on LIFENET INSURANCE 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 LIFENET INSURANCE with a short position of ANGLER GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFENET INSURANCE and ANGLER GAMING.
Diversification Opportunities for LIFENET INSURANCE and ANGLER GAMING
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LIFENET and ANGLER is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding LIFENET INSURANCE CO 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 LIFENET INSURANCE 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 LIFENET INSURANCE CO 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 LIFENET INSURANCE i.e., LIFENET INSURANCE and ANGLER GAMING go up and down completely randomly.
Pair Corralation between LIFENET INSURANCE and ANGLER GAMING
Assuming the 90 days horizon LIFENET INSURANCE CO is expected to generate 0.52 times more return on investment than ANGLER GAMING. However, LIFENET INSURANCE CO is 1.91 times less risky than ANGLER GAMING. It trades about 0.13 of its potential returns per unit of risk. ANGLER GAMING PLC is currently generating about -0.16 per unit of risk. If you would invest 1,170 in LIFENET INSURANCE CO on September 5, 2024 and sell it today you would earn a total of 70.00 from holding LIFENET INSURANCE CO or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
LIFENET INSURANCE CO vs. ANGLER GAMING PLC
Performance |
| Timeline |
| LIFENET INSURANCE |
| ANGLER GAMING PLC |
LIFENET INSURANCE and ANGLER GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFENET INSURANCE and ANGLER GAMING
The main advantage of trading using opposite LIFENET INSURANCE and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFENET INSURANCE 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.| LIFENET INSURANCE vs. Wstenrot Wrttembergische AG | LIFENET INSURANCE vs. Gold Road Resources | LIFENET INSURANCE vs. Sumitomo Mitsui Construction | LIFENET INSURANCE vs. Darling Ingredients |
| ANGLER GAMING vs. MeVis Medical Solutions | ANGLER GAMING vs. ONWARD MEDICAL BV | ANGLER GAMING vs. CVR Medical Corp | ANGLER GAMING vs. AVITA 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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