Correlation Between ANGLER GAMING and SOGECLAIR

Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and SOGECLAIR 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 SOGECLAIR 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 SOGECLAIR SA INH, you can compare the effects of market volatilities on ANGLER GAMING and SOGECLAIR 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 SOGECLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and SOGECLAIR.

Diversification Opportunities for ANGLER GAMING and SOGECLAIR

0.01

Correlation Coefficient

ANGLER GAMING  SOGECLAIR

Significant diversification

The 3 months correlation between ANGLER and SOGECLAIR is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and SOGECLAIR SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOGECLAIR SA INH 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 SOGECLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOGECLAIR SA INH has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and SOGECLAIR go up and down completely randomly.

Pair Corralation between ANGLER GAMING and SOGECLAIR

Assuming the 90 days horizon ANGLER GAMING PLC is expected to under-perform the SOGECLAIR. In addition to that, ANGLER GAMING is 1.92 times more volatile than SOGECLAIR SA INH. It trades about -0.11 of its total potential returns per unit of risk. SOGECLAIR SA INH is currently generating about 0.01 per unit of volatility. If you would invest  1,825  in SOGECLAIR SA INH on September 18, 2024 and sell it today you would earn a total of  0.00  from holding SOGECLAIR SA INH or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

ANGLER GAMING PLC  vs.  SOGECLAIR SA INH

ANGLER GAMING PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANGLER GAMING PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

SOGECLAIR SA INH

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SOGECLAIR SA INH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SOGECLAIR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ANGLER GAMING and SOGECLAIR

The main advantage of trading using opposite ANGLER GAMING and SOGECLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, SOGECLAIR 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 SOGECLAIR will offset losses from the drop in SOGECLAIR's long position.

The idea behind ANGLER GAMING PLC and SOGECLAIR SA INH pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.