Correlation Between ANGLER GAMING and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and PennantPark Investment 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 PennantPark Investment 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 PennantPark Investment, you can compare the effects of market volatilities on ANGLER GAMING and PennantPark Investment 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 PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and PennantPark Investment.
Diversification Opportunities for ANGLER GAMING and PennantPark Investment
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANGLER and PennantPark is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment 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 PennantPark Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Investment has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and PennantPark Investment go up and down completely randomly.
Pair Corralation between ANGLER GAMING and PennantPark Investment
Assuming the 90 days horizon ANGLER GAMING PLC is expected to under-perform the PennantPark Investment. In addition to that, ANGLER GAMING is 2.4 times more volatile than PennantPark Investment. It trades about -0.03 of its total potential returns per unit of risk. PennantPark Investment is currently generating about 0.04 per unit of volatility. If you would invest 653.00 in PennantPark Investment on September 26, 2024 and sell it today you would earn a total of 7.00 from holding PennantPark Investment or generate 1.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
ANGLER GAMING PLC vs. PennantPark Investment
Performance |
Timeline |
ANGLER GAMING PLC |
PennantPark Investment |
ANGLER GAMING and PennantPark Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ANGLER GAMING and PennantPark Investment
The main advantage of trading using opposite ANGLER GAMING and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, PennantPark Investment 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 PennantPark Investment will offset losses from the drop in PennantPark Investment's long position.ANGLER GAMING vs. FEMALE HEALTH | ANGLER GAMING vs. GAMESTOP | ANGLER GAMING vs. Hochschild Mining plc | ANGLER GAMING vs. GameStop Corp |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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