Correlation Between Atrium Ljungberg and ANGLER GAMING
Can any of the company-specific risk be diversified away by investing in both Atrium Ljungberg 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 Atrium Ljungberg and ANGLER GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atrium Ljungberg AB and ANGLER GAMING PLC, you can compare the effects of market volatilities on Atrium Ljungberg 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 Atrium Ljungberg with a short position of ANGLER GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Ljungberg and ANGLER GAMING.
Diversification Opportunities for Atrium Ljungberg and ANGLER GAMING
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atrium and ANGLER is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Ljungberg AB 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 Atrium Ljungberg 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 Atrium Ljungberg AB 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 Atrium Ljungberg i.e., Atrium Ljungberg and ANGLER GAMING go up and down completely randomly.
Pair Corralation between Atrium Ljungberg and ANGLER GAMING
Assuming the 90 days horizon Atrium Ljungberg AB is expected to generate 0.45 times more return on investment than ANGLER GAMING. However, Atrium Ljungberg AB is 2.22 times less risky than ANGLER GAMING. It trades about -0.1 of its potential returns per unit of risk. ANGLER GAMING PLC is currently generating about -0.13 per unit of risk. If you would invest 1,812 in Atrium Ljungberg AB on September 4, 2024 and sell it today you would lose (82.00) from holding Atrium Ljungberg AB or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Atrium Ljungberg AB vs. ANGLER GAMING PLC
Performance |
| Timeline |
| Atrium Ljungberg |
| ANGLER GAMING PLC |
Atrium Ljungberg and ANGLER GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Ljungberg and ANGLER GAMING
The main advantage of trading using opposite Atrium Ljungberg and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Ljungberg 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.| Atrium Ljungberg vs. ANGLER GAMING PLC | Atrium Ljungberg vs. CI GAMES SA | Atrium Ljungberg vs. Cal Maine Foods | Atrium Ljungberg vs. OURGAME INTHOLDL 00005 |
| ANGLER GAMING vs. Automatic Data Processing | ANGLER GAMING vs. Warner Music Group | ANGLER GAMING vs. DATAGROUP SE | ANGLER GAMING vs. Information Services International Dentsu |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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