Correlation Between GAMING FAC and ANGLER GAMING
Can any of the company-specific risk be diversified away by investing in both GAMING FAC 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 GAMING FAC and ANGLER GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMING FAC SA and ANGLER GAMING PLC, you can compare the effects of market volatilities on GAMING FAC 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 GAMING FAC with a short position of ANGLER GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and ANGLER GAMING.
Diversification Opportunities for GAMING FAC and ANGLER GAMING
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GAMING and ANGLER is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA 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 GAMING FAC 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 GAMING FAC SA 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 GAMING FAC i.e., GAMING FAC and ANGLER GAMING go up and down completely randomly.
Pair Corralation between GAMING FAC and ANGLER GAMING
Assuming the 90 days horizon GAMING FAC SA is expected to under-perform the ANGLER GAMING. But the stock apears to be less risky and, when comparing its historical volatility, GAMING FAC SA is 1.6 times less risky than ANGLER GAMING. The stock trades about -0.04 of its potential returns per unit of risk. The ANGLER GAMING PLC is currently generating about 0.02 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Significant |
| Accuracy | 99.66% |
| Values | Daily Returns |
GAMING FAC SA vs. ANGLER GAMING PLC
Performance |
| Timeline |
| GAMING FAC SA |
| ANGLER GAMING PLC |
GAMING FAC and ANGLER GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and ANGLER GAMING
The main advantage of trading using opposite GAMING FAC and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC 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.| GAMING FAC vs. Kaufman Broad SA | GAMING FAC vs. Sanyo Chemical Industries | GAMING FAC vs. BROADWIND ENRGY | GAMING FAC vs. Soken Chemical Engineering |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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